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The range of electric cars priced under €25,000 is growing in Europe

Transport & Environment expects sales of these models to increase sevenfold in 2026 compared with 2024. The organization attributes the growth to a broader range of models and warns that easing European emissions targets could slow their expansion.

Several turquoise electric cars climb a staircase of blocks; on the right, a barrier with a dark, leaf-emblemmed disk crosses their path.
AI-generated conceptual illustration · Edition Business

The range of electric cars with a starting price below €25,000 is growing in Europe, and Transport & Environment (T&E) expects sales of these models to increase sevenfold in 2026 compared with 2024. This figure is a forecast based on market trends, not a final result for the year.

The change is taking place in a segment that had few electric options for years. According to T&E’s report, close to 40 new electric models were launched in the first half of 2026, and around 60 more are expected to arrive before the end of the year. The organization estimates that the number of models with a starting price below €25,000 will have doubled in 2026 compared with the previous year, reaching 16. Four would have a starting price below €20,000.

More models and more registrations

The expansion in supply coincides with an increase in registrations of battery electric vehicles (BEVs) in the European Union. Between January and August 2026, 1.64 million were registered, 45% more than in the same period in 2025. In the second quarter, BEVs reached a 22% market share, according to T&E.

The organization also expects sales of electric cars with a starting price below €25,000 to rise by a further 34% in 2027. For that year, it estimates that models with a starting price below €30,000 could account for close to a quarter of European electric car sales. These are estimates, not figures that have already been confirmed.

Models cited in coverage include the Citroën ë-C3, the Dacia Spring, the Leapmotor T03, the Hyundai Inster, and the Renault 5. The arrival of new city cars and compact vehicles broadens the options for buyers and companies looking for electric alternatives in lower price segments, although the starting price alone does not provide information about the total cost of use or the conditions of each model.

Regulation at the center of the debate

T&E argues that the European Union’s CO₂ emissions targets are driving the arrival of new affordable models. The organization warns that weakening the regulations planned for 2030–2035 could slow this expansion in supply and harm European manufacturers’ position in the international competition for electric vehicles. This is T&E’s assessment of the possible effects of a regulatory change.

Isabell Büschel, T&E’s director in Spain, said that the market response to the new models shows that limited supply had been an obstacle to demand. In its statement, the organization also includes order data and sales expectations reported by manufacturers; these data relate to specific brands and do not constitute aggregated market results.

For companies in the sector, the growth of lower-priced models signals increased competition in the city car and compact segments. Sales trends will depend on whether the forecasts materialize and on factors such as available supply and the European regulatory framework.

Sources and methodology

  1. Los eléctricos baratos multiplican por siete sus ventas ↗elperiodicodelaenergia.com
  2. El 'boom' del coche eléctrico asequible en Europa ↗www.eleconomista.es
  3. La oleada de coches eléctricos asequibles está ampliando… ↗www.transportenvironment.org
  4. Coches eléctricos asequibles: la oferta por debajo de 25.000 € copa ya el 60% del mercado europeo ↗Merca2
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