Europe's low-priced electric vehicles are accelerating their market debut, with models priced below 25,000 euros expected to reach seven times their 2024 sales this year.

The European Federation for Transport and Environment (T&E) released a report on October 5, projecting that from 2026, sales of pure electric vehicles priced below 25,000 euros will reach seven times the 2024 level, and the number of available models in this price range will increase to 16 by the end of the year.

Meanwhile, from January to August this year, new registrations of pure electric vehicles in the EU reached approximately 1.64 million units, up 44.9% year-on-year, with market share rising to 21.7%.

The number of low-priced models doubles, automakers push toward the 20,000-euro market

The report forecasts that by the end of 2026, the European market will have 16 pure electric vehicle models with starting prices below 25,000 euros, double the previous year, of which 4 will have starting prices below 20,000 euros. T&E expects sales of these low-priced models to grow by a further 34% in 2027, approaching ten times the 2024 level; models with starting prices below 30,000 euros will then account for nearly a quarter of the pure electric vehicle market.

Model supply is expanding. In the first half of this year, nearly 40 new pure electric vehicles were launched in the European market, with the total number of available models in the mass market exceeding 150. About 60 new models are expected to be launched for the full year, nearly four times the average of about 15 per year from 2021 to 2025.

The Volkswagen ID. Polo has entered this price range. Volkswagen announced in July that the Trend entry-level version equipped with a 37 kWh battery has a starting price of 24,995 euros in the German market, with a WLTP range of up to 334 kilometers, and DC fast charging from 10% to 80% taking about 23 minutes.

The report predicts that by 2028, there will be about 10 models with starting prices not exceeding 20,000 euros, including the Renault Twingo, Volkswagen ID.Up, and Dacia models.

EU pure electric vehicle registrations approach gasoline cars, market share rises to 21.7%

Data from the European Automobile Manufacturers' Association shows that in the first eight months of this year, new registrations of pure electric vehicles in the EU totaled 1,641,333 units, with market share rising from 15.8% in the same period last year to 21.7%. During the same period, registrations of pure gasoline vehicles fell to 1,634,733 units, down 18.6% year-on-year. Cumulative registrations of pure electric vehicles have slightly exceeded those of pure gasoline vehicles, with both holding a market share of 21.7% when calculated to one decimal place. The combined share of gasoline and diesel vehicles dropped from 37.5% in the same period last year to 29%.

Growth in pure electric vehicles was reflected across major markets: registrations in France rose 74.2% year-on-year, Germany grew 53.1%, Denmark grew 40.9%, and Belgium grew 13.1%. Hybrid vehicles remain the most purchased powertrain type among EU consumers, with a market share of 36.6% in the first eight months; plug-in hybrid vehicles held a 10% share.

Emission targets drive supply, T&E warns that relaxing policy will slow the launch of low-priced cars

T&E linked the accelerated rollout of low-priced models to the EU's carbon dioxide emission targets for cars. The organization believes that during the period from 2021 to 2024 when targets remained unchanged, automakers had limited incentive to launch low-priced electric vehicles; the current compliance requirements for 2025 to 2027 are pushing manufacturers to expand their pure electric vehicle product lines. Rising fuel prices have also increased consumers' focus on usage costs. Lucien Mathieu, T&E's head of cars, said the oil crisis has further driven European consumers' demand for small, low-priced electric vehicles.

The organization also warned that weakening the 2030 to 2035 emission targets could hinder the continued volume growth of low-priced models. Under its scenario modeling of the relevant relaxation plan by the European People's Party, the pure electric vehicle market share in 2030 could remain at 22%, lower than the 47% expected under current policy; sales of models with starting prices below 25,000 euros could fall by nearly three-quarters compared with the current policy scenario.