This question needs to be answered from MANY Different Angles.
Weight only in the Hips
If you have an Apple Shaped Body, that is, weight is mostly centered in your belly area, then, as a priority, please get yourself checked for Diabetes/Pre-Diabetes (in case you haven’t already done so).
You Cannot Target Specific Body Parts to Lose Fat From
. This is NOT Possible. You need to lose Excess Body Fat overall…your body then decides how/where to lose fat from. Overtime, as you continue to lose Excess Body Fat, your problem areas (such as your hips, belly etc) will lose Fat too.
Nutrition
is BY FAR the MOST IMPORTANT aspect that needs to be looked at, if you need to reduce Excess Body Fat, (from anywhere in your body). You might need to cut down on Excess Calorie intake, and ensure that you are eating healthy. Without making adequate changes to your Nutrition, no amount of Exercise will help you reduce Excess Body Fat.
Compound Exercises over Isolation Type Exercises Always opt for an Exercise Training Program that has Compound Exercises (one that targets your entire body) rather than Isolation Type Exercises, (unless you are a Body Builder).
Squats are an EXCELLENT Exercise. However, they should be part of a well thought out Training Regimen. A proper and Personalized Training Regimen can be prepared by yourself, if you know what you are doing. If not, please approach a Qualified Professional to prepare a good Exercise Training Program).
With ALL the above, it means that Squats are an EXCELLENT Exercise. However, should be done as part of a Proper Training Plan.
Squats (or any other Exercise for that matter), in itself, will NOT reduce Excess Body Fat. Nutrition should be the First Aspect to be looked at.
By following a Proper Training Protocol and an Appropriate Nutrition Program, over time, you will lose EXCESS BODY FAT, from all over your body, including from your Hips as well.
Hope this helps!