Hybrid Electric Vehicles Gain Momentum as Market Shifts in 2025

As the automotive market outlook becomes more conservative in 2025, industry analysts predict that Hybrid Electric Vehicles (HEVs) will defy the trend and emerge as a dominant force. Combining environmental benefits with the elimination of range anxiety, HEVs are expected to continue their rapid growth. In 2023, HEVs accounted for approximately 20% of the total market share, surging to 26% in 2024. With demand for fully electric vehicles slowing, and more automakers introducing HEV models, industry insiders believe that HEVs could capture 30% of the market this year, solidifying their position as a mainstream automotive choice.

According to Taiwan’s Motor Vehicles Office, the number of HEV registrations reached 99,800 units in 2023, representing 20.9% of the total market. This figure soared to a record-breaking 119,084 units in 2024, accounting for 26% of all new vehicle sales. Despite growing interest in electric vehicles, HEVs have continued to gain traction, highlighting their advantage in addressing range anxiety while offering competitive pricing in both new and used car markets.

Industry insiders note that demand for electric vehicles is cooling, prompting automakers to adjust their strategies. The pace of EV launches has slowed, while interest in range-extending hybrid vehicles continues to rise. Amid increasing environmental regulations, major luxury car brands such as Mercedes-Benz, BMW, Tesla, and Porsche remain committed to their EV lineups, each competing in their respective segments.