Europe sees a 45% surge in electric car sales: 1.64 million units have already been sold, with budget models seeing their sales increase by 7 times

08/10/2026 14:30

Updated to

08/10/2026 14:30

Electric car sales are growing rapidly in Europe in 2026. From January to August, 1.64 million electric vehicles were registered in the European Union, representing a 45% increase compared to the same period last year, according to a new report by Transport & Environment (T&E).

This growth has enabled electric vehicles to account for approximately 22% of all new cars sold during these 8 months. Various factors contribute to this progress, but T&E highlights one in particular: manufacturers are offering many more models, and more importantly, electric alternatives with significantly lower prices are beginning to appear on the market.

1.64 million electric cars sold by August

The supply of electric cars available in Europe has increased by approximately 50% compared to the previous year. T&E attributes this growth to stricter European CO2 emission targets, which has prompted manufacturers to significantly expand their electric vehicle lines.

Price is also beginning to play an important role, as 5 of the 20 best-selling electric cars in Europe already have a starting price below 30,000 euros, based on the German market and without including incentives. T&E estimates that sales of models with a starting price under 25,000 euros will be 7 times higher this year than in 2024.

The range will continue to expand in the coming months. The organization expects that by the end of 2026, there will be 16 electric models available for less than 25,000 euros, double the number from last year. European manufacturers currently account for nearly 60% of available electric models and added 16 new models in the first half of 2026, while Chinese brands control 21% of the market and added another 11 models.

Small electric cars are seeing rising sales volumes

Renault is one of the clearest examples. After launching the Renault 5 E-Tech, which ended 2025 as the third-best-selling electric car in the European Union and the best-selling electric car in its segment, the French company has expanded its lineup with the new Renault Twingo E-Tech.

The strategy seems to be working. Renault’s electric car sales increased by 63.2% in the first half of 2026, following a 72.2% increase in 2025. Meanwhile, other newly introduced affordable electric models are beginning to show strong presence in monthly sales statistics.

During August alone, the new KIA EV2 saw 4,429 registrations, while the CUPRA Raval recorded another 3,608 units. The Volkswagen ID. Polo, on the other hand, achieved 1,876 registrations in its first month on the market. These figures are still far behind those of the best-selling electric vehicles, but they indicate that demand is beginning to emerge for this new generation of smaller models.

Larger electric vehicles still dominate sales

The growth of budget-friendly models does not mean they currently lead the market. JATO’s data for August shows that larger and generally more expensive electric cars continue to occupy some of the top positions.

The Tesla Model Y, Škoda Elroq, BMW iX1, BMW iX3, and Volkswagen ID.4 each saw over 6,000 registrations in August. Therefore, price alone does not explain the growth of Europe’s electric vehicle market. T&E also points to other economic factors, such as rising fuel costs, which increase the appeal of electric vehicle operating expenses compared to internal combustion engine models.