From diesel to electric: the revolution underway

Fifteen years ago, 71% of cars sold in the Spanish market were powered by diesel engines. During the first half of 2025, the percentage of new cars powered by diesel engines was only 5.2%, while fully electric cars reached a market share of 7.95%, and plug-in hybrids already represent 11.45% of the total, far behind diesel. All experts agree that this trend will only continue to grow thanks to the increasing availability of hybrid, plug-in hybrid, and electric vehicles, and their increasingly competitive prices.

Over the past fifteen years, the paradigm shift in the electrification of the automotive industry has been absolute. In fact, never before in the history of the automotive industry has such a radical change occurred in such a short time. If we had been able to peek through a keyhole in 2010 to see what the current scenario would be like, we would have found it hard to believe.

The transition to electric cars has had two key moments that explain its acceleration: the Dieselgate crisis or emissions fraud of the Volkswagen group in 2015 and the outbreak of the coronavirus pandemic in 2020.

The first factor led to EU institutions feeling betrayed by major European manufacturers, who had made diesel the defining characteristic of the continental industry. This prompted the Volkswagen Group, the leading automotive company in Europe, to accelerate—perhaps with the zeal of a convert—the electrification of its entire range. This process was also facilitated by new, much stricter and more restrictive EU environmental regulations, and by new, more realistic and comprehensive fuel consumption and emissions homologation cycles.

The outbreak of the coronavirus pandemic was the second factor that directly impacted the electrification of the automobile. The health crisis was accompanied by a complete shutdown of factories in Europe and a shortage of chips and semiconductors from China, demonstrating the extent to which the European industrial sector depended on the Asian giant. Moreover, Chinese automotive brands saw an opportunity to enter the European market and establish a strong presence in the electrified urban vehicle segment through brands such as BYD, MG, and the Geely group with Ebro, Omoda, and Jaecoo, among others.

Prices above purchasing power

The European market has struggled to recover its pre-2020 registration levels. The main obstacle for buyers has undoubtedly been the price of new vehicles. Recent studies indicate that the average salary in Spain has increased by 27% between 2010 and 2025, but the price of new cars has risen by 77% due to the increased cost of raw materials, new mandatory safety systems, and the amortization of new electrified platforms. A mainstream seven-seater family car like the Peugeot 5008 cost around €21,000 in 2010 and now costs €41,000. A basic utility vehicle like a 100 hp Seat Ibiza or Renault Clio cost around €11,500 in 2010, while now versions with this power rarely cost less than €22,000.

This increase has primarily impacted lower-income buyers, pushing them towards well-maintained used models, which in turn has driven up the price of used vehicles. The drop in demand for new cars has led major European manufacturers to cut production, adjust workforces, and initiate mergers, such as those of the Stellantis group, which includes historic brands like Peugeot, Citroën, Fiat, DS, Lancia, and Opel, among others.

The future of electrification

Whatever the case, the future of the automotive industry will be electric, or it won't exist at all, but the transition process won't be as rapid as the authorities would have liked. Until the charging network and infrastructure are truly sized and adapted to citizens' needs, the public won't make the switch en masse, and we'll still see a relatively long period (around ten to fifteen years) in which combustion engine vehicles—especially hybrids and plug-in hybrids—coexist with the occasional electric ones. The key to the return to widespread adoption of electric cars lies in small, reasonably priced city cars with modest power, rather than powerful sedans or SUVs with long ranges and high prices.