It turns out that giving people more electric cars they can afford is a very effective way of selling more of them. Europe’s EV sales have hit a new record this year, according to a new study, with smaller, cheaper models helping driving that growth.

According a new report from Transport & Environment, an advocacy group, electric car sales in the European Union reached 1.64 million units from January through August, up 45% year over year. They accounted for roughly 22% of new cars sold, while the choice of electric models expanded by 50% compared to a year ago.

Transport & Environment notes that this is happening alongside an influx of new affordable EVs that have hit the market due to tightening CO2 targets in Europe. Five of Europe’s top 20 best-selling EVs start below €30,000 ($33,600), based on their German price before incentives.

The organization forecasts that sales of electric models with starting prices below €25,000 will be seven times their 2024 level this year. It expects 16 models below that threshold to be available by the end of 2026. That’s twice as many as last year.

Renault seems to have figured it out: After launching the 5 E-Tech, the EU’s third-best-selling EV in 2025 and best-selling electric subcompact, it has now launched the even cheaper Twingo, which is already proving to be a hit. The French automaker saw EV sales rise 63.2% in the first half of 2026, following a 72.2% jump in 2025.

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