Electric vehicle sales in Europe reached 1.64 million units between January and August 2026, reflecting a 45% increase compared to the same period in 2025, according to the non-governmental organization Transport & Environment (T&E). This growth is linked to stricter European CO₂ emissions standards and the rising cost of fuel, which has encouraged consumers to switch to more affordable alternatives. In the second quarter of 2026, electric vehicle sales exceeded those of gasoline vehicles for the first time, with a market share of 22% in Q2, rising to 28% by August. The increase in electric vehicle sales is directly tied to European CO₂ emissions regulations, which require automakers to reduce the carbon footprint of their vehicle fleets. By the midpoint of the compliance period (2025–2027), manufacturers have already achieved 75% of their target reductions. Half of the market, including major brands like BMW, Mercedes-Volvo, Stellantis, Kia, and Tesla-Ford, has already met their emissions thresholds. Volkswagen, which initially lagged slightly behind schedule, has introduced new, affordable electric models to close the gap. In June 2026, 31% of Volkswagen’s European orders were electric. In France and Germany, which together account for about half of all electric vehicle sales in the EU, the market share reached 38% and 32% respectively in August 2026. These countries benefit from strong charging infrastructure and supportive policies for electric mobility. Other countries are also seeing rapid growth, with Italy, Slovenia, and Bulgaria experiencing increases of 69%, 151%, and 103% respectively. During the second quarter of 2026, electric vehicle sales surpassed those of gasoline vehicles in ten European countries. 2026 marks a significant diversification in the range of available electric models, with approximately 60 new electric vehicles expected to be launched by the end of the year—nearly four times the previous annual average. European manufacturers lead the way, accounting for 60% of the models, followed by Chinese manufacturers at 21%. The diversification is especially visible in the affordable segment, with the number of models priced under 25,000 euros doubling from 8 to 16, including four priced under 20,000 euros. Sales of these affordable models are expected to grow sevenfold compared to 2024, reaching significant volumes by 2027. Compact and economical electric models are reshaping the market, with Renault launching the Twingo electric, Volkswagen preparing the ID.Up, and Stellantis offering models around 15,000 euros, including the Citroën 2CV and the Fiat Panda electric. Approximately 60% of the affordable models expected by 2028 will be produced in Europe, supporting the local industry. The European Commission is considering classifying vehicles under 4.2 meters as "small and affordable" (M1E). Two models, the Renault 5 and the Leapmotor T03, are already among the best-selling models of the first half of 2026. A vehicle that is 10 centimeters longer typically costs 5,000 euros more. Automakers estimate that electric vehicles will achieve cost parity with internal combustion vehicles by 2030. BMW and Volvo Cars indicate that certain electric models are already as profitable as their gasoline counterparts. Renault is achieving higher margins on its small electric models, and Stellantis expects cost parity for its 15,000 euro model by 2028. These trends suggest a growing maturity in the European electric vehicle industry, capable of competing with Asian manufacturers. The debate on revising CO₂ standards for 2030 and 2035 is ongoing in the European Parliament. Massimiliano Salini of the PPE proposes relaxing some regulations, including removing the utility factor for hybrids and granting exemptions for biofuels. T&E warns that these proposals could slow the growth of electric vehicle sales, limiting their market share to 22% in 2030 and 39% in 2035. Sales of models priced under 25,000 euros could fall by three quarters, reducing affordable options for consumers. Softening European emissions targets could have significant geopolitical consequences, as European manufacturers risk falling behind Chinese competitors. According to Salini’s proposal, European battery electric vehicle (BEV) sales would reach only half of Chinese competitors' sales by 2035. Maintaining current targets would allow Europe to catch up with China by 2035. European electric vehicle exports could nearly triple by 2031, compensating for the decline in internal combustion vehicle exports. Beyond the automotive sector, revising CO₂ standards could influence Europe’s energy future. Weakening the targets would increase oil imports by 3.5 billion barrels by 2050, leading to an additional 288 billion euros in costs. By 2050, imports would double compared to maintaining ambitious targets. The oil crisis linked to the war in Iran has already cost European motorists 53 billion euros, with 40 billion euros attributed to diesel. Electric car drivers, who recharge at home, spend 50% less than those driving on gasoline or diesel, saving about 350 euros since the beginning of the crisis. Despite progress, European vehicle emissions remain high. In 2025, vehicles emitted over 450 million tons of CO₂, representing 43% of transport sector emissions. This level is still 18% higher than in 1990. In 2023, internal combustion vehicles emitted an average of 160 grams of CO₂ per kilometer, only 10% less than in 2000. Including electric vehicles, the average drops to 135 grams, but these accounted for only 3% of the fleet in 2025. Globally, several emerging markets are adopting electric vehicles more rapidly than Europe. Vietnam saw its electric vehicle share rise from 5% to over 40% in three years. Australia follows a similar trend, while the United States remains below 10%. Southeast Asian countries prefer battery electric vehicles, unlike Europe, Japan, and South Korea, where hybrids remain popular. This divergence could influence global industrial strategies and redefine automotive competitiveness. The idea of allowing vehicles that run exclusively on biofuels raises concerns. Other sectors, such as aviation, already require more advanced biofuels than Europe can sustainably produce. Opening the market to new cars would place excessive pressure on resources. T&E estimates that Salini’s proposal would increase biofuel demand by 42% to 102% by 2050. Total demand could reach 2 to 12 times the volumes available sustainably, requiring unverifiable imports, despite documented fraud on certain products. The vote on revising CO₂ standards in the autumn of 2026 is crucial for the European automotive industry. Maintaining the targets could stimulate sales of affordable small electric vehicles. Over a million models priced under 20,000 euros could be sold by 2030. Conversely, weakening the standards would reduce the offer, limiting sales of models priced under 25,000 euros. William Todts, executive director of T&E, highlights the importance of this choice: "Stifling this momentum now would trap Europeans in oil dependence. Legislators must choose between a clean electric era and a costly fossil fuel dependency." T&E recommends rejecting the freeze on the utility factor for hybrids, refusing the five-year averaging of the 2030 target, eliminating fuel credits for 2035, limiting low-carbon steel credits to European production, and reserving super-credits for small electric vehicles under 4.1 meters. The organization also calls for displaying real consumption data on vehicle labels to better inform consumers. European car manufacturers have shifted focus from expensive models to more affordable options, driven by rising fuel costs and regulatory pressures. The arrival of affordable city cars, such as the 100% electric version of the Volkswagen Polo, has democratized access to electric mobility. Volkswagen and its competitors are launching popular models not only to please buyers but also to avoid potential fines for failing to meet emissions targets. The Middle East conflict has caused an uncontrollable surge in oil prices, leading to a 38% increase in diesel costs since the start of hostilities. This has pushed European drivers to consider electric vehicles as a more cost-effective option, with the combined market share of gasoline and diesel engines falling below 30% in Europe this year.