Electric Car Prices Drop, Boosting EU Sales

Mar 12, 2026

71 min

Mar 12, 2026 00:30

Electric car prices drop, boosting EU sales: report

## Surge in Electric Vehicle Sales

A recent report highlights a significant increase in electric vehicle (EV) sales across Europe, driven by a decrease in prices. In August 2025, plug-in EVs accounted for over 60% of car sales in Sweden, up from 46% the previous year. Fully electric vehicles alone made up more than 40% of these sales.

## Price Reductions and Market Impact

The average price of electric cars in Europe fell by 4%, or 1,800 euros, to 42,700 euros in 2025. This price drop is attributed to the introduction of new, affordable EV models. The reduction in prices has been linked to EU emission reduction targets, which have encouraged manufacturers to offer more competitively priced vehicles.

## Emission Targets and Industry Response

Despite debates over relaxing the 2035 ban on new petrol and diesel cars, European carmakers are on track to meet 2025-2027 emission targets. The advocacy group Transport & Environment (T&E) reports that EVs made up 19% of all new car sales in the EU and Norway in 2025, up from 14% the previous year.

## Future Outlook

The EU's CO2 standards have played a crucial role in making electric cars more accessible. Price parity between EVs and internal combustion engine vehicles is expected by 2030 if current emission goals remain unchanged. However, the automotive industry is lobbying for more lenient targets, including extending the timeline for a 2030 emissions reduction target.

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