Sales of battery electric vehicles (BEVs) priced below €25,000 are expected to increase sevenfold in 2026 compared with 2024, as the European market sees a rapid expansion of affordable electric models, according to a new report by Transport & Environment (T&E).

The report says the number of BEV models available with a starting price below €25,000 has doubled, while almost 40 new electric models were launched in the first half of 2026. This brings the number of mass-market BEVs available in Europe to more than 150, with another 60 models expected to be launched by the end of the year.

T&E attributes the increase in model availability to the EU’s CO2 emissions targets for cars, arguing that weakening these targets for 2030–2035 could slow the rollout of smaller and more affordable electric vehicles and affect the ability of European carmakers to compete in the global EV market.

The pace of new model launches has also accelerated. The nearly 40 BEVs introduced during the first half of 2026 compare with an average of 15 new models per year between 2021 and 2025. T&E expects the number of new models launched in 2026 to reach around 100 by the end of the year.

The report also highlights the impact of higher fuel prices on the economics of driving. T&E estimates that the recent oil price crisis has cost EU road users €53 billion. By mid-September, filling a 50-litre diesel tank cost €30 more than before the Iran war, while switching to an EV at the beginning of the crisis would have saved around €350 in running costs by mid-September, according to the organisation.

The expansion of the model range and higher energy prices are coinciding with record EV sales in the EU. Between January and August 2026, 1.64 million BEVs were registered, 45% more than in the same period of 2025, according to figures cited by T&E from the European Automobile Manufacturers’ Association (ACEA). In the second quarter of 2026, BEVs accounted for 22% of new-car sales and, for the first time, outsold petrol-only cars over an entire quarter.

T&E expects European carmakers to meet their 2025–2027 CO2 targets, which it identifies as a key driver behind the current increase in EV model launches. The organisation says that during the period of stable targets between 2021 and 2024, manufacturers had fewer incentives to introduce affordable electric models.

Isabell Büschel, director of T&E in Spain, said the growing availability of smaller and more affordable EVs shows consumer interest in these vehicles. She pointed to the Volkswagen ID. Polo, which received more than 40,000 orders, the Cupra Raval, manufactured in Spain and sold below €25,000 with support from the Auto+ programme, and Renault’s electric R5, which the company says is selling at twice the expected rate in Spain.

T&E also warns that weakening the EU’s 2030 target could remove almost three-quarters of affordable models just as they are entering the market, according to the organisation. It argues that maintaining the current regulatory framework would support consumer choice while giving European manufacturers greater opportunity to compete in the global EV market.