Electric vehicle market expands as affordable models and tariff discussions grow

The market for affordable electric vehicles (EVs) is expanding significantly. A report from the European clean transport organisation Transport & Environment (T&E) predicts that sales of EVs priced at or below €25,000 will increase seven-fold this year compared to 2024. Battery electric vehicle (BEV) sales reached 1.64 million in the first eight months of the year, representing a 45 per cent increase over 2025.

In the United Kingdom, competition is driving a growing selection of EVs priced under £30,000, with models from manufacturers such as BYD, Citroën, and Cupra offering various ranges.

However, trade tensions regarding EVs persist. UK leadership is considering raising tariffs on Chinese electric cars to align with the European Union’s 45 per cent rate. This move is being discussed in the context of potential UK-EU agreements on industrial subsidies and defence loans, with German officials suggesting that British firms may only access certain EU benefits if UK tariffs on Chinese EVs are increased from the current 10 per cent.