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

The European Union's car CO₂ targets are driving a surge in electric vehicle sales, particularly for affordable models priced below €25,000, according to a report by T&E, a European environmental group. The EU's clean car regulations have led to record electric car sales in the first half of 2026, with sales of sub-€25k models projected to increase sevenfold this year compared to 2024.

Almost 40 new electric models were introduced in the first half of 2026, nearly quadrupling the annual average from 2021 to 2025. The consumer demand for smaller, more affordable EVs has risen, with the number of models under €25k doubling. Notable examples include the Volkswagen ID. Polo, which saw over 40,000 orders and a 10-month waiting list due to high demand.

The report highlights that electric cars offer lower running costs and protection against rising fuel prices, which have risen by €30 per 50-litre tank of diesel since the Iran war. Electric car sales in the EU reached 1.64 million battery-electric vehicles (BEVs) between January and August 2026, a 45% increase year-over-year. BEVs even outsold pure petrol cars for the first time in the second quarter of 2026, capturing a 22% market share.

The combination of new electric models and high energy prices is fueling the electric car boom in Europe. However, weakening the 2030-2035 EU targets could jeopardize this progress and trap millions in oil dependency.