Automotive News Europe — 2026-01-22
Automotive Industry
Sales of liquid petroleum gas vehicles in Europe grew 10 percent in 2025 as market leader Renault Group, led by its budget Dacia brand, expanded its LPG lineup.
Lower taxation on LPG compared to gasoline models in markets including Italy, Spain, and France boosted demand.
Automakers that offer LPG vehicles benefit because they help car companies lower their average fleet CO2 emissions.
“It’s a critical alternative if you want to reduce your [emissions] footprint with a very affordable solution,” Dacia’s head of sales, Frank Marotte, told Automotive News Europe.
However, LPG is rapidly approaching the end of its life due to CO2 changes in European Union legislation from 2030, which will force automakers to launch more electric cars and kill the business case for LPG.
“It will not be an offer that can go beyond 2030,” Marotte said.
Renault Group has 89% of LPG market
Sales of LPG vehicles rose 9.8 percent to 347,717 in 2025, according to preliminary figures from market analysts Dataforce.
Renault Group was the LPG sales leader, with 89 percent of the market, after increasing sales by 14 percent. Italy’s DR Motor Company was the second largest with 6.2 percent, and Hyundai-Kia was No. 3 with 3.8 percent.
Automakers can reduce a gasoline model’s CO2 emissions by 10 g/km by adding an LPG tank in addition to a gasoline tank and converting the engine to accept LPG. LPG fuel is significantly cheaper per liter than gasoline, making bi-fuel cars cheaper to run for owners.
The CO2 reduction is critical for Dacia, as it balances the need to meet CO2 compliance requirements with buyers’ demand for low-cost vehicles.
“It’s a transition period we are in, and LPG is definitely one of the right solutions,” Marotte said.
Dacia did not meet its emissions obligations mandated by European Union regulators in 2025 and will not reach its CO2 target until 2027, the first full year of sales for its second full-electric minicar that the brand plans to sell alongside the Spring EV.
Dacia expands its LPG offerings
Dacia was the No. 1 LPG brand in Europe last year, with 228,962 sales. The Sandero small car accounted for just over half that figure.
Dacia offers LPG on all its combustion-engine models, with the Sandero Eco-G 120 starting at €16,150 in France.
The brand updated its LPG offering in October by moving the Sandero, Jogger, Logan, and Duster LPG models to a more powerful 1.2-liter, three-cylinder engine with 120 hp, up from 100 hp previously.
The bi-fuel conversion was also offered with a dual-clutch automatic gearbox for the first time.
At the 2026 Brussels auto show, Dacia also previewed the Bigster and Duster Eco-G bi-fuel models with a mild-hybrid drivetrain and an electric rear axle for all-wheel drive, a combination that the brand said reduced CO2 emissions by 20 g/km.
The Duster’s twin gasoline and LPG tanks give it a range of 1,500 km (932 miles) without refueling, Dacia said.
Italy was the largest LPG market last year, accounting for 41 percent of the new-car market with 141,147 sales, according to Dataforce. However, the big growth came from Spain, which saw sales increase by 77 percent to 59,284, moving it ahead of France in third place.
Italy saw demand drop by 2.4 percent in the year following the exit of Stellantis brands Fiat and Lancia from the LPG market.
Dacia’s home market of Romania also saw strong growth of 47 percent to 22,675 to become the fourth biggest market ahead of Poland and Portugal.