Sales of sub-€25,000 electric car models set to rise sevenfold

You can now buy many more electric car models priced under €25,000 than you could last year.

Sales of electric car models priced under €25,000 are projected to increase sevenfold in 2026 compared to 2024, according to a report by Transport & Environment (T&E). This surge is driven by new EU car CO2 targets, which have incentivized manufacturers to introduce more affordable electric vehicles. The report indicates that nearly 40 new electric models were launched in the first half of 2026, with an additional 60 expected by year-end, more than tripling the rate of new model introductions seen between 2021 and 2025. This expansion of choice addresses consumer demand for smaller, less expensive EVs, exemplified by the rapid sell-out of models like the VW ID. Polo. In the first eight months of 2026, 1.64 million battery-electric vehicles were sold in the EU, a 45% increase year-over-year, and BEVs outsold pure petrol cars for an entire quarter for the first time.

The expanding availability of affordable electric vehicles, particularly those under the €25,000 mark, signals a significant shift in the EV market towards greater consumer accessibility. This trend is directly attributed to the European Union's stringent CO2 targets, which have compelled automakers to diversify their offerings beyond premium segments. The report highlights that the previous lack of affordable options, rather than consumer disinterest, was the primary barrier to wider EV adoption, a point underscored by the overwhelming demand for models like the VW ID. Polo. As manufacturers respond to these regulatory incentives and consumer appetite, the market is poised for a substantial increase in lower-cost EV sales.

This burgeoning market for affordable EVs has profound implications for both consumers and European automakers' global competitiveness. Consumers benefit from increased choice and protection against volatile fuel prices, with EVs offering lower running costs. For European car manufacturers, the proliferation of these models is crucial for meeting regulatory requirements and establishing a strong foothold in the global electric vehicle race. T&E's warning against weakening future targets suggests that continued regulatory pressure is vital to sustain this momentum and prevent a retreat to oil-dependent vehicles, potentially jeopardizing Europe's progress in electrification.