Electric vehicle sales across Europe are accelerating, supported by a growing selection of affordable models. However, proposed changes to EU emissions regulations could slow this expansion and reduce the availability of budget-friendly electric cars.

According to a new analysis by environmental organisation Transport & Environment, the European market has benefited from stricter emissions targets that encourage manufacturers to develop more accessible electric vehicles. The organisation warns that relaxing these requirements could undermine future growth.

Electric Car Sales Are Surging

Battery-electric vehicle registrations across the European Union reached approximately 1.64 million during the first eight months of 2026, representing a 45% increase compared with the previous year. Electric cars accounted for around 22% of new vehicle sales during this period, rising to 28% in August. Several major markets performed particularly well. France recorded an electric vehicle market share of 38% in August, while Germany reached 32%.

The growing availability of affordable models has played an important role in this expansion. T&E estimates that 16 electric cars priced below €25,000 will be available by the end of 2026, twice as many as in 2025. Sales of these lower-priced vehicles are projected to reach approximately seven times their 2024 level.

More Affordable Models Enter The Market

European consumers now have access to more than 150 mass-market electric models. Approximately 60 new models are expected to arrive during 2026, compared with an annual average of 15 between 2021 and 2025.

European manufacturers currently account for nearly 60% of available models, having introduced 16 additional vehicles during the first half of the year.

Chinese brands represent approximately 21% of the market's model selection and introduced 11 new models over the same period.

This expanding choice could make electric motoring more accessible to households previously discouraged by high purchase prices.

Proposed Rules Could Slow Progress

The European Parliament is considering changes to the EU's 2035 vehicle emissions framework. A proposal from Italian lawmaker Massimiliano Salini would establish a 90% emissions reduction target and allow vehicles using exclusively renewable fuels to qualify alongside electric cars. It would also extend the compliance assessment period from three years to five. T&E estimates that these adjustments could significantly weaken manufacturers' incentives to introduce affordable electric vehicles.

Under its modelling, battery-electric cars would account for only 22% of new vehicle sales in 2030 and 39% in 2035. By comparison, the organisation estimates shares of 47% and 85% under the European Commission's alternative approach. These figures are projections rather than confirmed future outcomes.

Manufacturers Approach Existing Targets

T&E argues that current emissions requirements remain achievable. According to its assessment, manufacturers have already closed approximately three-quarters of the gap towards their 2025–2027 targets halfway through the compliance period.

BMW, Stellantis, Kia and the Mercedes-Volvo emissions pool have reportedly reached their respective requirements. Volkswagen still needs to reduce average emissions by approximately seven grams of carbon dioxide per kilometre.

What This Means For European Drivers

The future of affordable electric vehicles could depend partly on how European emissions requirements evolve. T&E warns that weaker targets could reduce demand for lower-priced models, potentially limiting consumer choice and slowing investment.

For motorists, the central issue is affordability. Continued expansion of competitively priced electric cars could make switching from conventional vehicles easier.

The outcome of the regulatory debate will help determine how quickly Europe's electric vehicle market develops over the coming decade.