The average price of electric cars in the European Union has fallen for the first time since 2020. According to a T&E report, this drop is mainly due to the launch of more affordable models by manufacturers, in a context marked by the CO₂ emission reduction targets established by the European Union.
According to this analysis, the average price of new electric vehicles decreased last year by 1,800 euros, 4%, to stand at 42,700 euros in the EU. This decrease, they explain, was driven mainly by the introduction of smaller and more accessible electric models in segment B, where the average price fell by 13% in 2025. Among the models that reached the mass market are the Citroën ë-C3 and the Renault 5, launched at a key moment to help manufacturers meet the European CO₂ emissions target for 2025.
This reduction contrasts with what happened in previous years. According to the report, between 2020 and 2024 the average price of these cars rose by 5,000 euros, despite the fact that the costs of batteries and other components had been reduced. However, “the CO₂ targets set by the EU in that period were less ambitious, which allowed manufacturers to focus on selling larger electric vehicles with higher margins,” they state at T&A.
Price equality with combustion cars
T&E's analysis also concludes that car manufacturers whose sales share represents approximately half of the market have already met the European emissions target for 2025-2027 two years ahead of schedule. Only Renault and Volkswagen are behind, although they are expected to reach their targets before the end of 2027.
Furthermore, electric vehicles have already reached price parity with combustion vehicles in segments D and E in 2024. In segments A, B and C, that parity could be reached in 2030 if cost reductions are passed on to consumers.
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However, the T&E report warns that this process could be delayed if emission targets are weakened. The proposal by the European Commission to average the 2030 target over three years could slow down the adoption of electric vehicles, going from a market share of 57% to 47% in 2030, according to the forecasts included in the study. Demands from part of the industry to extend that average to five years would reduce that share to 32%.
For the experts of T&E, this situation could derail the transition towards the electric vehicle, which would leave the EU further behind in the global electric car race and would put employment and investment at risk.