Europe’s EVs Need To Be Small And Cheap For Mass Market Success

InnovationTransportationEurope’s EVs Need To Be Small And Cheap For Mass Market SuccessByNeil Winton,Senior Contributor.Forbes contributors publish independent expert analyses and insights. U.K.-based Neil Winton covers the European Auto industry.Follow AuthorMay 09, 2026, 09:16am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Geely EX2 (Photo by Alexander Bogatyrev/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesEurope’s EV sales surge was driven by government subsidies, tax breaks and affluent, early adopters, with a little bit of help from high prices at the gasoline and diesel pumps. The next battle is for the mass market and that means EVs must be small and cheap.Typical new EVs so far have been massive and pricey SUVs costing an average of around €45,000 ($53,000) after tax. Effective range has been under 300 miles. Prices have been edging down with many new EVs falling to around €20,000 ($23,400), with a couple of pioneers like the Leapmotor TO3 and Renault’s Dacia Spring pushing €15,000 ($17,700). The next phase, generated by government edicts rather than personal choice, will determine whether EVs become a mass-market success and that depends primarily on price. And if they’re cheaper, they’ll be quite a bit smaller; tiny even. Following Japan’s Kei-car model, €10,000 ($11,800) is the target for a basic 2+2 vehicle with 100 miles of range and top speed of 65 mph. According to Reuters, citing trade association E-Mobility Europe and researcher New Automotive, EV sales in Europe jumped by almost a third in the first quarter – up 29.4% to almost 560,000 and up 51.3% at over 240,000 in March compared with the same time last year. The trouble is, these record sales only accounted for a market share of 21.2% of all new cars and SUVs and probably need to at least triple by 2030 and reach almost 100% of the market by 2035, under European Union carbon dioxide e...