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Electric And Hybrid Vehicles Strengthen Cyprus’ Automotive Market In 2025

According to recent data released by Cystat, Cyprus witnessed a robust 4.2 percent increase in total motor vehicle registrations during the first ten months of 2025, climbing from 42,930 to 44,732 units. This growth underscores the island nation’s evolving automotive landscape as consumer demand shifts towards greener technologies.

Rising Demand For Low-Emission Technologies

The report highlights that passenger saloon car registrations grew by 4.0 percent, reaching 34,782 units. A notable detail is that 37.2 percent of these vehicles are brand new, while the remaining 62.8 percent are pre-owned. Moreover, rental car registrations surged by an impressive 33.8 percent to 4,866 units. Such trends indicate that both individuals and businesses are increasingly favoring environmentally friendly vehicle options.

Hybrid And Electric Models Gain Ground

A deeper dive into the data reveals a discernible consumer tilt away from traditional fuels. The market share of petrol-powered passenger cars dropped to 42.5 percent from 49.5 percent, with diesel models also receding to 8.6 percent from 10 percent. In contrast, electric cars experienced a modest growth from 3.8 percent to 4.8 percent, and hybrids soared from 36.7 percent to 44.1 percent. Nearly half of all new passenger saloon car registrations thus comprise hybrid or fully electric models, a milestone that signals Cyprus’ commitment to low-emission mobility.

Growth Across Commercial Vehicle Segments

Commercial segments were not left behind. Motor coaches and buses increased from 125 to 167 units, while the goods conveyance category expanded by 6.6 percent, reaching 5,142 units. Within this segment, rental vehicles, light goods vehicles, and heavy goods vehicles recorded gains of 23.3 percent, 6.6 percent, and 3.1 percent respectively. Notably, road tractors maintained steady numbers, and motorcycles over 50cc increased by 17.0 percent, reflecting diversified growth across all vehicle types. Conversely, mopeds under 50cc saw a significant decline, falling from 627 to 190 units.

October 2025: A Snapshot Of Accelerated Growth

Focusing on October 2025, total vehicle registrations reached 4,520—a 9.9 percent increase from October 2024’s 4,111 units. Passenger saloon cars alone spiked by 11.7 percent, further underscoring the sustained momentum of the market.

Conclusion: Steering Towards A Sustainable Future

The latest figures clearly indicate that consumer preferences in Cyprus are undergoing a powerful transformation, increasingly favoring hybrid and electric vehicles over traditional petrol and diesel models. This shift not only supports the nation’s environmental goals but also positions Cyprus’ automotive market at the forefront of low-emission innovation in the region.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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