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Cheaper electric cars are reaching a wider range of buyers in Europe just as the European Commission proposes changing the rules that steer automakers toward lower-emission vehicles. But the proposed 2035 shift is not law: the existing framework sets a 100% emissions-reduction target for new cars and vans from 2035, while the Commission’s proposal would reduce the required tailpipe cut to 90% and allow specified compensation for the rest.

Why cheaper EVs matter to Europe’s car market

Electric-car uptake has accelerated, and the range of models has broadened. A European Commission article published on 16 June 2026, citing ACEA registration data, reported that fully electric cars made up 20.6% of new EU car registrations in April 2026, up from 15.7% in April 2025. Fully electric cars averaged 17.4% of EU new-car registrations over 2025. The Commission also said around 750,000 new fully electric cars were sold in the EU from January through April 2026, and described a wider selection of models priced around €25,000 than a few years earlier. That price is indicative context, not a guaranteed price or a like-for-like comparison among models. European Commission, 16 June 2026.

Those figures are not directly comparable with the Commission’s 2024 measure for zero-emission vehicles, which covered the EU, Norway and Iceland: zero-emission vehicles accounted for 14.5% of new passenger-car registrations and 6.4% of new van registrations. The Commission also reported that average CO₂ emissions from new passenger cars registered in Europe fell 28% between 2019 and 2024, attributing the main driver to the rise of zero-emission vehicles. European Commission, reducing CO₂ emissions from vehicles.

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What the current EU rules require

Regulation (EU) 2019/631 sets CO₂ performance standards for new passenger cars and vans. Regulation (EU) 2023/851 amended that framework to establish a 100% emissions-reduction target for new cars and vans from 2035. Until any amendment is adopted, that is the existing legal framework—not the Commission’s proposed 90% target. European Commission, reducing CO₂ emissions from vehicles.

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The 2025–2029 fleet-wide targets are 93.6 g CO₂/km for cars and 153.9 g CO₂/km for vans. These are manufacturer fleet targets, not an individual emissions limit for every vehicle. A separate flexibility for the 2025–2027 period—averaging compliance over three years—was adopted in June 2025 as Regulation (EU) 2025/1214; it is not part of the still-proposed 2030–2032 banking and borrowing arrangement.

What the Commission proposes to change

In December 2025, the Commission presented a proposal to amend the car and van CO₂ framework. Its key 2035 change is a 90% reduction in tailpipe emissions rather than the current 100% target. Under the proposal, manufacturers would have to compensate for the remaining 10% using low-carbon steel made in the EU, e-fuels or biofuels. The Commission says plug-in hybrids, range extenders, mild hybrids and internal-combustion vehicles could continue to play a role alongside battery-electric and hydrogen vehicles. These are features of the proposal, not permission already enacted by a revised law. European Commission, proposed CO₂ standards revision.

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Proposed incentives for small affordable electric cars

Before 2035, the proposal would let manufacturers receive “super credits” for small affordable electric cars made in the EU. The Commission says the mechanism is intended to encourage more small EV models to reach the market: “This will incentivise the deployment on the market of more small EV models.” It is a proposed compliance incentive, not evidence that prices have already fallen or that particular models have launched because of it.

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Proposed flexibility for 2030 and vans

For 2030–2032, the Commission proposes allowing manufacturers to bank and borrow compliance credits. It also proposes reducing the vans’ 2030 CO₂ target from a 50% reduction to 40%. The proposal therefore treats vans differently from passenger cars; the registration figures show that zero-emission vans had a smaller share of new registrations than zero-emission cars in 2024, though operational needs and charging access also shape van adoption.

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How ACEA’s position differs from the Commission proposal

The European Automobile Manufacturers’ Association (ACEA) is an industry association, and its position should be read as advocacy rather than as a description of enacted EU rules. In a fact-sheet introduction dated 12 May 2026, ACEA pointed to weak demand, global competition, affordability challenges and uneven charging-infrastructure deployment as pressures on manufacturers. It called for additional flexibility for 2030 and a workable, technology-neutral route to decarbonisation by 2035. ACEA, CO₂ standards for cars and vans.

Issue Commission proposal ACEA position
2035 emissions approach 90% tailpipe-emissions reduction, with the remaining 10% compensated through specified measures. Advocates a workable, technology-neutral decarbonisation path to 2035; the cited introduction does not specify a numerical target.
Flexibility Proposes banking and borrowing for 2030–2032. Calls for additional flexibility for 2030; the cited introduction does not set out a specific mechanism.
Small EVs Proposes super credits for small affordable electric cars made in the EU before 2035. The cited introduction does not state a position on this proposed incentive.
Vans Proposes lowering the 2030 vans target from a 50% to a 40% reduction. Raises affordability and uneven charging deployment as industry pressures; the cited introduction does not state a specific vans target.
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Has the proposed rule change been adopted?

The available European Parliament Legislative Train schedule listed the revision of CO₂ standards and vehicle labelling as “Tabled” in its June 2026 update. That status does not establish whether the proposal advanced after the update. As of 7 October 2026, the sources cited here do not confirm later legislative progress, so the proposed 2035 changes should not be described as law. European Parliament Legislative Train schedule.

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What this means for buyers

A broader range of cheaper EVs can make electric driving accessible to more buyers, but the evidence here does not establish country-by-country affordability or total ownership costs. Purchase price, running costs and charging access are separate considerations: a car around €25,000 is not automatically affordable for every household, and the cited sources do not provide comparable prices for specific vehicles or national cost calculations.

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The proposed EU-made small-car credits are intended to influence manufacturers’ compliance incentives, not guarantee a particular retail price. Meanwhile, the registration data indicates stronger uptake, but it does not show that the Commission proposal caused that growth; the proposal remains distinct from the market trend it may seek to shape.

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