European electric car sales are reaching record levels in 2026, driven by an expanding range of affordable models and rising fuel prices. According to a Transport & Environment progress report, sales of electric cars with a starting price below €25,000 are set to rise sevenfold in 2026 compared to 2024, as manufacturers respond to EU clean car CO₂ targets.
The surge in affordable models reflects a dramatic acceleration in EV launches. Almost 40 new electric models entered the market in the first half of 2026 alone, bringing the total number of mass-market battery-electric vehicles (BEVs) to more than 150. About 60 new models are expected by year-end 2026—nearly four times the average of 15 new models per year between 2021 and 2025. The number of models available below the €25,000 price point has doubled.
The report notes that the wave of affordable options is finally meeting sustained consumer demand. Volkswagen’s ID. Polo, a sub-€25,000 model, quickly sold out with over 40,000 orders and a 10-month waitlist. Lucien Mathieu, cars director at Transport & Environment, stated: “The issue was not the demand, but what they had to offer.”
Beyond model selection, electric cars offer lower running costs and protection from volatile fuel prices. The oil price crisis has cost EU road users €53 billion, according to the report. As of mid-September, filling a 50-litre diesel tank cost €30 more than before the Iran war. Switching to an electric car at the crisis’s beginning would have saved approximately €350 in running costs by mid-September.
Electric vehicle adoption is accelerating across Europe. Between January and August 2026, a total of 1.64 million BEVs were sold—45% more than the same period in 2025. In the second quarter of 2026, BEVs outsold pure petrol cars for the first time in a full quarter, achieving a 22% market share.
The report attributes this growth to EU car CO₂ targets, which incentivize manufacturers to produce affordable models. All European carmakers are expected to achieve compliance with 2025-2027 targets. During the flat-target period from 2021 to 2024, manufacturers had limited incentives to introduce budget-friendly vehicles.
Transport & Environment warns that weakening the 2030-2035 targets could halt momentum. According to Mathieu, such action “would choke off affordable models by nearly three-quarters just as they are reaching the market and lock millions across Europe into debilitating oil dependency.”
Key facts
- Sales of electric cars below €25,000 are set to rise sevenfold in 2026 compared to 2024
- Almost 40 new electric models were launched in the first half of 2026; about 60 expected by year-end
- 1.64 million BEVs were sold between January and August 2026, 45% more than the same period in 2025
- BEVs outsold pure petrol cars for the first time in a full quarter in Q2 2026, achieving 22% market share
- The oil price crisis has cost EU road users €53 billion; switching to an EV would have saved €350 in running costs by mid-September