IAA Mobility 2025 – Valeo at the heart of tomorrow’s mobility

From engines to algorithms: Europe’s automotive reset

The European automotive industry is undergoing an unprecedented transformation, driven by a convergence of environmental, technological, and regulatory factors.

Safety in the lead

Since July 2024, all new vehicles sold in the EU must be equipped with advanced driver assistance systems (ADAS), including Intelligent Speed Assistance, Autonomous Emergency Braking, Lane Keeping Systems, and Driver Drowsiness & Attention Warning.

And looking ahead, the regulation continues to evolve in Europe: starting July 2026, all new vehicle types must also include an Advanced Driver Distraction Warning system—part of the broader Driver Monitoring System (DMS) framework. Smart in-vehicle technologies are becoming the norm.

In response, European carmakers are scaling up ADAS integration across their fleets, relying on Valeo technologies.

German carmakers are leading this transformation: Mercedes-Benz is the first to offer a certified Level 3 automated driving system in Europe, available on selected highway sections; BMW is preparing its next-generation platform to enable semi-autonomous functions powered by AI and cloud connectivity; Volkswagen is scaling up ADAS deployment across its electric range.

Stellantis and Renault now offer Level 2 driving features—such as lane centering and adaptive cruise control—on most new models and Volvo Group has made real-time hazard detection a standard feature on several of its vehicles.

The rise of clean mobility

The energy transition is accelerating, and the data confirms a clear and accelerating transition toward electrified vehicles across the EU.

In the first five months of 2025, the EU car market continued its shift toward electrified powertrains.

Battery-electric vehicles (BEVs) reached 701,089 units, capturing 15.4% of the market—driven by strong growth in Germany, Belgium, and the Netherlands, despite a decline in France.

Hybrid-electric vehicles (HEVs) rose sharply to 1.6 million units, representing 35.1% of the market, with all major markets showing gains.

Plug-in hybrids (PHEVs) also rebounded, growing 46.9% year-on-year in May and reaching 8.2% market share, led by Germany and Spain.

In contrast, petrol and diesel car sales fell sharply. Petrol registrations dropped by 20.2%, bringing their share down to 28.6%, while diesel declined 26.6%, falling to just 9.5% of the market.

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