For the first time since 2020, the average price of electric vehicles (EVs) in Europe fell last year, giving a boost to sales, according to a report by advocacy group Transport & Environment.
The analysis showed that EVs accounted for 19 per cent of all new car sales in the European Union and Norway in 2025, up from 14 per cent in 2024.
Meanwhile, the average EV price dropped four percent cent, or €1,800, to €42,700 ($49,390), driven largely by the launch of smaller, more affordable models.
T&E credited EU CO₂ standards for the price drop, saying regulatory targets pushed carmakers to offer competitively priced electric vehicles.
Automakers now face steep fines if they fail to meet these emission goals.
Even though EVs historically carried higher upfront costs than petrol or diesel cars, price parity could be reached by 2030 if the EU maintains its emission objectives.
EU environment ministers are scheduled to discuss relaxing the 2035 ban on new petrol and diesel cars, which many carmakers argue is unrealistic. Proposed changes including reducing exhaust emissions from new vehicles by 90 per cent from 2021 levels by 2035, down from the previous 100 per cent goal.
It is also offering “super credits” for small, affordable EVs produced in the EU to make compliance easier, adjusting the intermediate 2030 target timeline, as lobbied by ACEA.
These debates would determine whether Europe can meet climate targets while keeping EVs accessible to a broader range of buyers.
The drop in prices and rising EV sales indicated a maturing market where electric mobility is becoming more financially viable for consumers, even as policymakers balance climate goals with industry realities.
