Sales of battery-electric cars with starting prices below €25,000 are set to increase sevenfold in the European Union in 2026 compared with 2024, according to a report from Transport & Environment (T&E). The organization linked the increase in affordable models to EU vehicle carbon dioxide targets and said weakening the regulations could slow their introduction.
Almost 40 new electric models launched in the first half of 2026, bringing the number of mass-market battery-electric vehicle models to more than 150. About 60 new models are expected to be released by the end of the year, nearly four times the annual average of 15 new models recorded between 2021 and 2025. The number of available electric models starting below €25,000 has doubled.
Sub-€25,000 EV Sales Set to Rise Sevenfold in 2026
Affordable electric choice is expanding as EU car CO2 targets drive record BEV sales and bring smaller, lower-priced models to market.
BEVs outsold pure petrol cars across a full quarter for the first time as model choice and affordability improved.
EU battery-electric vehicle sales reached 1.64 million units between January and August, an increase of 45% from the same period last year. BEVs also outsold gasoline-only cars across a full quarter for the first time in the second quarter of 2026, when they achieved a 22% market share.
T&E said all European automakers are expected to comply with the EU’s 2025–2027 targets, which it identified as the driver of the new model launches. During the period of unchanged targets between 2021 and 2024, manufacturers had limited incentives to introduce affordable electric models, according to the report. T&E warned that weakening the 2030 target could reduce the rollout of affordable models by nearly three-quarters.
The report also linked electric vehicle demand to higher fuel costs. It estimated that the oil price shock cost EU road users €53 billion. As of mid-September, filling a 50-liter diesel tank cost €30 more than before the Iran war, while switching to an electric car at the start of the crisis would have saved about €350 in running costs by mid-September.
Source: transportenvironment.org
