Electric cars, record sales in Europe: boom driven by lower prices and rising fuel costs

More affordable models, cheaper charging and expanding networks help offset the oil crisis.

Electric vehicle adoption in Europe is growing at a record pace. So far in 2026, sales have benefited from the arrival of more affordable models on the market, helping carmakers align with EU climate targets. EV sales in the European Union have reached record levels, also driven by rising fuel prices, according to environmental organisation Transport & Environment.

According to the Transport & Environment study, 1.64 million BEVs (battery electric vehicles) were sold between January and August, 45% more than in the previous year. In addition, in the second quarter of 2026, BEVs outsold petrol cars for the first time over an entire quarter, accounting for 22% of the market.

BEV adoption in the medium- and heavy-duty truck segments recorded similar growth. Year-on-year sales of battery-electric medium-duty trucks doubled, reaching a 21% market share in the first half of 2026. Heavy-duty trucks, meanwhile, reached a BEV share of 2.3%. Largely thanks to this uptake, vehicle manufacturers are on track to meet their carbon dioxide emissions targets.

European carmakers produced 7 of the 10 best-selling BEV models, and at least 60 additional new models are expected by the end of 2026, another record figure. This is 4 times higher than the average of 15 new models per year recorded between 2021 and 2025. Thanks to this momentum, T&E estimates that the number of affordable models priced below €25,000 could double this year alone and be 7 times higher than in 2024.


Why electric cars are gaining ground in Europe

As the International Council on Clean Transportation pointed out, taking into account both performance improvements and inflation, BEV prices have fallen by around 18% over the past 5 years. This has been driven mainly by falling global battery prices, which, adjusted for inflation, have declined by around 35% over the same period. The gap between falling battery costs and BEV retail prices suggests that BEV prices could fall further in the coming years.


Consumers protected from petrol and diesel price increases

The T&E study also highlighted that drivers of petrol and diesel cars continue to pay the price of Europe’s dependence on oil, while EV drivers do not. As of 14 September 2026, charging an electric car at home cost 50% less than running a petrol or diesel vehicle.

Among fuels, diesel has recorded the sharpest increase as a result of the energy crisis, rising by 38% since the start of the war in Iran. This means that in Europe, filling a 50-litre tank cost €30 more. Overall, the oil shocks of recent months have cost EU road users close to €53 billion, €40 billion of which was attributable to higher diesel prices alone.

For an indication of the economic benefits, even without considering the severe energy crisis of 2026, it is enough to look at 2025 data. Last year, the 8 million electric cars on EU roads helped reduce oil consumption by 46 million barrels, generating savings of €2.9 billion. Manufacturers also say that the latest oil crisis itself helped push buyers towards electric vehicles. VW’s head of sales partly attributes the increase in EV demand to higher petrol and diesel prices.


Public charging points are sufficiently widespread across Europe's roads

The International Council on Clean Transportation also found that public charging points are sufficiently widespread across Europe’s roads, although public charging remains significantly more expensive than private charging. Looking ahead, smart charging and vehicle-to-grid technologies offer potential savings, provided they are deployed on a larger scale.

Research by the International Council on Clean Transportation showed that by September 2026, the number of public charging points in the EU had increased almost eightfold since 2020. In June, there were 1.16 million charging points, indicating that the availability of public chargers would be sufficient for the EU’s current vehicle fleet.

Public charging infrastructure consists mainly of charging points for light-duty vehicles, alongside 2,450 chargers dedicated to heavy-duty vehicles. This expansion is in line with the fleet-based targets established under the Alternative Fuels Infrastructure Regulation, and all Member States except Malta have exceeded their respective targets. In terms of motorway network coverage, direct-current chargers with a capacity of 150 kW or more cover 92% of the network, while chargers dedicated to HDVs cover 16%.

The distribution of charging stations across Member States remains uneven, but reflects the areas where automotive markets are larger and electric vehicle adoption is stronger. In fact, 55% of public chargers are concentrated in the Netherlands, Germany and France.

This article was realized in collaboration with Rinnovabili.