Wave of Affordable Electric Cars Is Boosting Consumers’ Choice: Sales of Sub-€25,000 Models Set to Rise Sevenfold

Electric car options are growing fast in Europe, with a wave of cheaper models hitting the market this year. A new industry report found that sales of electric cars starting under €25,000 are on track to rise sevenfold in 2026 compared with 2024, as nearly 40 new electric models launched in the first half of the year alone, pushing the total number of mainstream battery-electric models past 150. Roughly 60 new models are expected by year's end, far above the average of 15 a year seen between 2021 and 2025. Volkswagen's ID. Polo, one of the new affordable entries, has already sold out with more than 40,000 orders and a 10-month waitlist.

The surge comes as rising oil prices make gas cars more expensive to run. The report estimates the recent oil price spike has cost European drivers €53 billion overall, and that fueling a 50-liter tank of diesel now costs €30 more than before the Iran war. Someone who switched to an electric car early in the crisis would have saved around €350 in running costs by mid-September. Electric cars outsold gas-only cars across a full quarter in Europe for the first time this spring, reaching a 22 percent sales share.

This growth is tied to EU rules requiring automakers to cut vehicle emissions through 2027, which pushed manufacturers to finally build smaller, cheaper electric models. The report's authors warn that weakening the EU's 2030 emissions targets could cut the number of upcoming affordable models by nearly three-quarters, slowing this trend before it reaches more drivers.