For drivers based in Cyprus, the context below is worth keeping in mind before the next purchase.
Car demand across the eurozone is expected to recover only slowly, according to the latest European Central Bank (ECB) assessment based on its Consumer Expectations Survey (CES). This comes at a time when Cyprus’ own vehicle market is moving in the opposite direction, showing clear momentum toward electric and hybrid models.
The ECB stresses that the automotive sector remains a major economic pillar, contributing around 10 per cent of manufacturing value added and nearly 2 per cent of real GDP. Yet despite its importance, new car registrations and production volumes in the second quarter of 2025 remained about 20 per cent and 30 per cent below early-2018 levels.
Survey results from July 2025 point to one key factor behind the slowdown: economic and financial uncertainty, which weighs most heavily on lower-income households. According to the report, this uncertainty is likely to keep demand subdued for some time.
The composition of purchases also reveals shifting consumer behaviour. Between 2021 and 2024, only 6–7 per cent of respondents each year reported buying a car. In July 2025, however, 53 per cent opted for a used vehicle, while 47 per cent purchased new. Concerns over depreciation were the primary reason for choosing second-hand models (22 per cent), while limited access to affordable financing posed the biggest challenge for low-income buyers (27 per cent).
As for powertrains, the shift toward full electrification remains slow across the eurozone. Internal combustion engine (ICE) cars dominate used-car purchases at 70 per cent. Among those planning to buy within the next year, demand still leans toward ICE vehicles (42 per cent) and hybrids (41 per cent), with fully electric models capturing only 16 per cent. According to the ECB, this limited interest suggests that the transition to electrification will remain gradual. At the same time, 81 per cent of buyers said they preferred a vehicle from an EU manufacturer — a consistent trend.
Cyprus, meanwhile, continues to chart a different trajectory. Data from the state statistical service (Cystat) for the first ten months of 2025 confirm an ongoing upward trend in the island’s vehicle market, largely fuelled by rising interest in low-emission and hybrid technologies. Overall motor vehicle registrations increased by 4.2 per cent, reaching 44,732 compared with 42,930 in the same period of 2024. Passenger saloon cars accounted for 34,782 of these, recording a 4.0 per cent rise.
Consumer preferences in Cyprus are clearly shifting: petrol-powered cars dropped to 42.5 per cent of new registrations (from 49.5 per cent in 2024), diesel fell to 8.6 per cent (from 10 per cent), while electric cars climbed from 3.8 per cent to 4.8 per cent. Hybrids saw the most significant growth, jumping from 36.7 per cent to 44.1 per cent. Almost half of all new passenger cars registered so far this year are now hybrid or fully electric.
Other categories also expanded, including rental cars — up 33.8 per cent — and goods-conveyance vehicles, which rose by 6.6 per cent. October 2025 alone recorded an 11.7 per cent year-on-year increase in passenger car registrations.
