The Cyprus automotive market continues to demonstrate strong growth. During the first five months of 2026, the number of registered vehicles on the island increased by 13% compared to the same period last year. These figures come from the latest motor vehicle registration report published by the Statistical Service of Cyprus.
Experts attribute the positive trend to sustained demand from both private consumers and businesses, as well as the ongoing modernization of the country’s vehicle fleet. At the same time, consumer preferences are evolving, with more Cypriot residents moving away from traditional petrol and diesel vehicles in favor of hybrid and electric models.
The Automotive Market Continues to Expand
Between January and May 2026, a total of 23,743 vehicles were registered in Cyprus, compared to 21,012 during the same period in 2025. In May alone, registrations reached 5,173 vehicles, representing a 6% increase year-on-year.
The strongest growth was recorded in the passenger car segment. During the first five months of the year, 18,259 passenger vehicles were registered, an increase of 12.5% compared to the same period in 2025.
However, the Cypriot market remains heavily dependent on imported used vehicles. Of the total number of passenger cars registered, approximately two-thirds were second-hand vehicles, accounting for 12,147 units. New vehicle registrations totaled 6,112 units.
Hybrids Become the Preferred Choice
One of the most significant trends of 2026 has been the rapid rise of hybrid vehicles. Their market share surpassed 50% of all passenger car registrations for the first time, reaching 51.3%.
By comparison, hybrids accounted for less than 43% of the market a year earlier. The growth is largely driven by their fuel efficiency, lower operating costs, and the fact that they do not require drivers to fully transition to electric charging infrastructure.
Against this backdrop, the share of petrol-powered vehicles fell from 43.7% to 35.4%. The diesel segment also declined slightly, from 8.8% to 8.3%.
Electric vehicles continue to gradually increase their presence in the market as well. Their share rose from 4.7% to 5%. Although the figures remain relatively modest, industry specialists point to steady interest in EVs supported by government incentive programs and the ongoing expansion of charging infrastructure across the island.
Demand for Rental Vehicles Declines
In contrast to the overall market growth, the rental car segment recorded a decline. During the first five months of the year, 1,884 rental vehicles were registered, compared to 2,197 during the same period in 2025.
Experts believe this trend reflects the large-scale fleet renewals carried out by rental companies in previous years following the recovery of the tourism sector, as well as a more cautious investment approach amid rising vehicle maintenance costs.
Nevertheless, tourism remains one of the key drivers of Cyprus’s automotive market, particularly during the summer season when demand for rental vehicles traditionally increases.
Growth in Truck and Bus Registrations
The country’s economic activity is also reflected in the commercial vehicle market. During the first five months of 2026, registrations of goods vehicles increased by 15.4%, reaching 2,854 units.
The strongest growth was recorded in the heavy truck segment, where registrations rose by more than 32%. Registrations of tractor units, light commercial vehicles, and vehicles used in the rental sector also increased.
Significant growth was also recorded in the bus market. From January to May, 102 buses were registered in Cyprus, compared to 63 during the same period last year. This increase may be linked to the ongoing modernization of public transportation fleets and the expansion of tourism-related transport services.
Motorcycles Continue to Gain Popularity
Interest in two-wheeled transportation is also rising. During the first five months of 2026, registrations of motorcycles with engine capacities above 50 cc increased by 15.3%, reaching 2,149 units.
Against a backdrop of higher fuel prices and increasing traffic congestion, many residents of Cyprus’s major cities view motorcycles as a practical and cost-effective alternative to cars.
At the same time, the market for low-powered mopeds continues to contract. Registrations in this category fell by nearly half compared to the previous year.
The latest statistics confirm that the Cyprus automotive market is undergoing a period of significant transformation. Consumers are increasingly choosing more environmentally friendly and economical forms of transportation, while hybrid vehicles are gradually becoming the new standard for local drivers.
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Photos: pixabay.com, DOM
