The average price of electric cars in Europe declined for the first time in four years in 2025, helping boost sales across the region, a new report released on Thursday, March 12, has revealed.

The development comes as the European Union prepares to debate proposals that could weaken climate targets for car manufacturers, including a planned ban on new petrol and diesel vehicles by 2035.

According to the report by clean transport advocacy group Transport & Environment, electric vehicles accounted for about 19 per cent of all new cars sold across the EU and Norway in 2025.

This represents a significant increase from the roughly 14 per cent recorded the previous year.

The organisation said the rising demand was partly driven by a reduction in the average cost of electric vehicles.

Its analysis showed that the average EV price across the bloc dropped by about four per cent, equivalent to €1,800, bringing the average cost down to around €42,700 ($49,390).

Naija News reports that the decline was largely attributed to the introduction of smaller and more affordable electric car models into the market.

Transport & Environment credited the EU’s emission reduction policies for pushing automakers to make electric cars more accessible to consumers.

The group noted that strict carbon dioxide emission targets had forced manufacturers to expand their electric vehicle offerings and compete on price.

“Even if the automotive industry doesn’t like to admit it, the EU’s CO2 standards have enabled hundreds of thousands of Europeans to access more affordable electric cars,” the organisation stated.

Under the EU’s regulations, automakers risk paying significant fines if they fail to meet the prescribed emissions targets.

The report further indicated that car manufacturers have either met or are on track to meet the 2025-2027 emission targets, considered the first milestone towards the bloc’s long-term climate goals.

This development comes despite concerns raised by the automotive industry that the region’s climate policies may be too ambitious.

EU environment ministers are expected to meet next week to deliberate on a proposal that could relax the planned 2035 ban on the sale of new petrol and diesel vehicles.

Several automakers have argued that the target may be difficult to achieve under current market conditions.

One of the major barriers to electric vehicle adoption has historically been the higher upfront cost compared with traditional combustion engine cars.

However, Transport & Environment said price parity between EVs and conventional vehicles could be achieved by 2030 if the EU maintains its current emission policies.

The group warned that weakening the targets could slow down progress in making electric vehicles widely affordable.

The issue is expected to dominate discussions in Brussels in the coming weeks.

Under proposals presented in December, car manufacturers would be required to cut exhaust emissions from new vehicles by 90 per cent from 2021 levels by 2035, rather than the previously planned 100 per cent reduction.

The proposals also include “super credits” for small and affordable electric vehicles manufactured within the EU, a mechanism designed to make it easier for automakers to meet emission targets.

However, the region’s automotive lobby, European Automobile Manufacturers’ Association, has called for additional concessions.

The association is pushing for the intermediate 2030 emissions target to be spread over five years instead of the three years proposed by the European Commission, among other policy adjustments.