T&E: the EU bought 1.64 million electric cars in eight months, and sub-€25k EV sales are up sevenfold
T&E's October 5 report: EU battery-electric sales rose 45% in January–August 2026, reaching 22% of the market. The group warns that weakening the 2030 CO2 targets would stop the wave of cheap EVs.
Electric cars are having their best year yet in the European Union. According to a report published today by Transport & Environment (T&E), 1.64 million battery-electric cars were sold in the EU in the first eight months of 2026, 45% more than in the same period last year.
The headline numbers
- 22% market share for BEVs in January–August 2026, up 6 percentage points on 2025. In August alone, the share hit 28%.
- In Q2, BEVs outsold pure petrol cars over a full quarter for the first time.
- France and Germany account for roughly half of sales; in August, BEV share reached 38% in France and 32% in Germany.
- Big growth from a small base in the east: Bulgaria +103%, Slovenia +151%, Italy +69%.
- 7 of the 10 best-selling EVs come from European carmakers.
Cheap EVs are taking off
The most interesting part of the report is about price. T&E expects sales of models starting below €25,000 to be seven times higher in 2026 than in 2024, with another 34% growth in 2027.
- By the end of the year there will be 16 EV models under €25,000, double last year's number, 4 of them under €20,000.
- About 60 new EV models are expected in 2026, nearly four times the 2021–2025 average.
- By 2028, around 10 models at or below €20,000 should be on sale, including the Renault Twingo, VW ID. Up and Dacia models. Stellantis is preparing a small EV family at around €15,000.
- Two cars under 4.2 metres, the Renault 5 and Leapmotor T03, made the EU's top 10 EV sellers in the first half of the year.
Carmakers representing half the market already meet their 2025–2027 CO2 targets: BMW, the Mercedes–Volvo pool, Stellantis, Kia and the Tesla–Ford pool. Halfway through the period, the industry has closed 75% of the gap.
The warning: what happens if the 2030 targets are weakened
The report lands in the middle of a political fight in Brussels. EPP rapporteur Massimiliano Salini is proposing to loosen the car CO2 rules in the European Parliament: five-year averaging of the 2030 target, credits for biofuels, and a 73% cut in 2035 instead of 100%.
According to T&E, that would mean:
- BEVs stalling at 22% of the market in 2030, instead of 47%;
- sales of EVs under €25,000 falling by nearly three quarters by 2030;
- European carmakers selling roughly half as many EVs as Chinese brands in 2035 (5.7 vs 11.9 million).
In short, T&E's message is that the very targets some politicians want to relax are what brought small, affordable EVs to market.
Bonus: what it costs to drive electric
T&E also notes that as of September 14, 2026, a home-charged electric car cost 50% less to run than a petrol or diesel car, after fuel prices rose following the start of the Iran war.
The Parliament vote on the "Automotive Package", which includes the new targets, has been pushed back by about two weeks. The final decision is due this autumn.
