Electric Vehicle Prices Drop Amid EU Climate Policy Debate

A report released on Thursday, March 12, indicates that the average price of electric vehicles (EVs) in Europe has dropped for the first time in four years, projected to aid sales across the region by 2025. This decline is linked to the European Union's preparation for debates on proposals to weaken climate targets for car manufacturers, including a plan to ban new petrol and diesel vehicles by 2035.

The report from the advocacy group Transport & Environment reveals that electric vehicles accounted for 19% of new car sales across the EU and Norway in 2025, marking a significant increase from approximately 14% the previous year. The average EV price has decreased by four percent, approximately €1,800, bringing the average cost down to around €42,700.

This decline is largely attributed to the introduction of smaller, more affordable electric car models. However, the report warns that weakening emissions targets could slow progress in making electric vehicles more affordable.