Will We Be Able to Afford Electric Cars in 2026?

According to Bearing Point, 29% of people in Germany in 2025 believe their next car will be electric. In Austria, 37% of people believe their next car will be electric. And there's reason to believe that number will rise. Industry giants like Stellantis are working to cut battery costs by 50% with new lithium-sulphur technology. If successful, electric cars could become as affordable as petrol cars by 2026 or soon after. What’s driving this shift, and how realistic is it? Let’s take a closer look.

• Many electric vehicles in the €20,000-30,000 price range will be introduced to the market in the coming years.

• Battery prices could fall by up to 50% by 2030, making EVs much more affordable.

• EVs will remain cheaper to run, especially if home charging is available.

• Electric cars will become cheaper while prices for ICE cars will increase.

In 2025, electric car prices start at around €15,000-20,000, depending on the brand and model. At the upper end, prices can go well beyond €100,000. The important news is that the number of affordable models is growing fast, especially from Asian manufacturers entering the European market.

Raise your hand if you think that one of the main things making electric cars less attractive is their price. Fortunately, this obstacle is becoming history. We found seven models priced between €20,000 and €30,000. There are even options under €20,000 available. And we’re talking not only about the tiny Fiat Topolino. Take the Dacia Spring, a small SUV priced from €13,590 in Austria and €16.900 in Germany. Or the new BYD Dolphin Surf, launched at just €19,990. Prices of the latter will rise slightly from July, but even then, it will remain among the most affordable full-sized EVs.

At the same time, it’s worth being realistic: lower-cost EVs often mean compromises, whether in range, charging speed, comfort, or interior quality. There’s always a sacrifice. Cars under €20,000 are great for short trips and urban use but less ideal for long motorway drives or family holidays. Even some models just under €30,000, such as the Fiat 500e, aren’t designed for everyone. But there are also solid all-rounders in this price range, like the MG4, with its great performance, solid range and 160 km/h top speed. So be sure to look closely at the details before making your decision.

In the future, more electric cars priced under €30,000 will become available, while more expensive models will be introduced to the market as well. To get a full picture, let’s have a look at the models arriving within the next one to two years, including several that have just recently launched.

1. VW ID. Every1: from €20.000 (2027) - Germany

2. Renault Twingo E-Tech: from €20.000 (2026) - France

3. Cupra Raval: from €25.000 (2025) - Span

4. Skoda Epiq: from €25.000 (expected 2026) - Czech Republic

5. Kia EV2: from €25.000 (expected 2026) - South Korea

6. MG S5 EV: from €28, 990 (2025) - China

7. Toyota Urban Cruiser: from €30.000 (expected in Q1 2026) - Japan

8. Nio Firefly: from €30.000 (2025) - China

9. Mazda6e: from €43.475 (expected in summer 2025) - Japan

10. Mercedes CLA: from €55.980 (2025) - Germany

Models priced up to €30,000 typically have a range between 300 and 400 km. Most of these EVs offer sufficient comfort for city driving and daily commuting. As usual, MG is one step ahead. Its long-range version, starting at €32,490, delivers up to 480 km* on a single charge. By comparison, the Mazda6e offers 479 km of range for €43,475. Detailed specifications for most electric vehicles in our selection are still scarce, as manufacturers aim to maintain a sense of intrigue ahead of the official launches.

* WLTP range

The key factors influencing EV prices are

• battery costs

• tech features

• brand

• global demand and policies

Battery prices in China are dropping fast. Some lithium-iron phosphate batteries are now going for just $75 per kWh. To put that in perspective: when a battery pack is below $100 per kWh, producing an electric car costs about the same or even less than building a petrol or diesel one. These decreasing numbers are starting to influence prices globally.

At the same time, Stellantis and Zeta Energy (based in Amsterdam and Houston) have teamed up to develop new lithium-sulphur batteries. These could store more energy while staying just as compact as today’s lithium-ion batteries. They are expected to lower EV battery prices by 50%.

Autonomous driving, facial recognition for unlocking your car, voice-activated climate control, adaptive cruise control and many other things you enjoy in modern vehicles don’t come cheap. These systems require powerful onboard computers, sensors, and software updates. That’s why they add thousands of euros to the price tag.

Think of Dacia. It has built a reputation around offering simple, affordable cars. People trust the brand to deliver decent quality at a no-frills price.

Now compare that to BMW. With a legacy of luxury, performance, and engineering precision, BMW can price their EVs much higher, often €50,000 and above. Buyers expect premium materials, top-tier comfort, that unmistakable driving feel and a big “Wow!” from friends.

Political decisions directly shape the price and availability of EVs. In the EU, policies that influence EV prices include:

• Purchase incentives and tax benefits, which vary by country (e.g. Umweltbonus in Germany, bonus écologique in France)

• Regulations like CO₂ fleet emission targets that push manufacturers toward electrification

• Trade policies, including customs duties on Chinese EVs

Chinese EV products, particularly BYD, have a strong impact on the European EV market. The BYD Dolphin Surf, which recently launched in Europe for around €20,000, is a clear move to undercut upcoming budget-friendly EVs like the Renault R5 or Volkswagen ID.2. And it’s not just the budget-friendly price. BYD’s models offer decent range, features, and build quality for the money.

Thanks to this pricing strategy, BYD is quickly gaining ground in Europe. Their market share is growing, and they’re starting to look like a serious threat to established European EV manufacturers. 

Of course, not everyone is happy with the situation. Therefore, the EU has introduced countervailing duties on imports of electric vehicles from China. The goal is to protect local industry from being undercut by cheaper imports.

In the meantime, Chinese brands are investing directly in Europe by establishing manufacturing facilities. For instance, BYD is building a huge EV factory near Szeged, Hungary. The plant, expected to start production in late 2025, will cost around €4 billion and could eventually produce up to 200,000 vehicles a year. Thousands of jobs are expected to be created in the region.

Yes, US tariffs are making electric cars more expensive, especially for German brands like BMW, Mercedes and VW. US import tariffs are costing them millions daily. If these extra costs continue, prices for their vehicles in Europe may rise. But a deal could ease tariffs from mid-2025, offering some hope for lower prices.

Every day, the extra US tariffs on car parts and imports are costing car manufacturers a lot of money. As of May 2025, BMW alone is losing around 10 million euros a day. That’s money they’d normally use for development, production, or even keeping prices stable.

Although a US court has ruled that the tariffs shouldn’t apply, they’re still in place, at least for now. Behind the scenes, the German car giants are negotiating with US officials to find a solution. BMW's CEO recently said he’s optimistic that things will improve starting in July 2025.

Yes, electric cars will soon match combustion engines in price. Price parity is becoming especially realistic first in the small car segment, where smaller batteries and simpler builds make EVs more cost-effective than ever.

In a recent interview with Welt am Sonntag, Renault CEO Luca de Meo revealed that Renault’s EV subsidiary, Ampere, is expected to turn a profit this year, driven by lower production costs.

The upcoming Twingo E-Tech Electric could be even cheaper than the current hybrid Clio. That’s a big deal, considering the Clio is already among Europe’s most affordable cars. According to de Meo, in some categories, like inner-city delivery vans or compact runabouts, EVs may become cheaper than their petrol equivalents in the near future.

If you mainly charge your electric car at home and use electricity from a PV system, some EV models are usually cheaper to drive than comparable petrol or diesel cars. When the purchase price of an EV is close to that of a combustion-engine vehicle, the former is generally the more economical choice.

Unlike combustion engines, where you can calculate costs based on average fuel prices, electricity costs for electric cars depend a lot on individual circumstances.

Here’s how it looks in Germany today:

• Charging at home only: Electricity costs around 39.8 cents per kWh.

• Charging only at public stations: Prices rise to about 59 cents per kWh.

• Charging half at home, half at public stations: A mix of both costs applies.

• Charging at home with solar power (let's assume a 25% reduction in costs): This reduces your effective electricity cost.

The price of diesel is about €1.54 per litre in Germany.

Let’s take the Opel Astra Electric Sports Tourer as an example. It uses 15.8 kWh per 100 km, while its petrol version consumes 5.1 litres of premium gasoline per 100 km (according to ADAC).

• Home charging only: 15.8 × €0.398 = €6.29

• Public charging only: 15.8 × €0.59 = €9.32

• Half home, half public: (15.8 × 0.5 × €0.398) + (15.8 × 0.5 × €0.59) = €3.15 + €4.66 = €7.81

• Home charging with 25% PV offset: 15.8 × €0.398 × 0.75 = €4.72

For the diesel Opel Astra Sports Tourer, 5.1 × €1.54 = €7.85 per 100 km

Here’s how it looks in Austria today:

• Charging at home only: Electricity costs around 33 cents per kWh.

• Charging only at public stations: Prices rise to about 59 cents per kWh.

• Charging half at home, half at public stations: A mix of both costs applies.

• Charging at home with solar power (let’s assume a 25% reduction in costs): This reduces your effective electricity cost.

The price of gasoline is about €1.476 per litre in Austria.

Let’s take the Opel Astra Electric Sports Tourer as an example. It uses 15.8 kWh per 100 km, while its petrol version consumes 5.1 litres of premium gasoline per 100 km (according to ADAC).

• Home charging only: 15.8 × €0.33 = €5.21

• Public charging only: 15.8 × €0.59 = €9.32

• Half home, half public: (15.8 × 0.5 × €0.33) + (15.8 × 0.5 × €0.59) = €2.61 + €4.66 = €7.27

• Home charging with 25% PV offset: 15.8 × €0.33 × 0.75 = €3.91

For the diesel Opel Astra Sports Tourer, 5.1 × €1.476 = €7.53 per 100 km.

As you see, driving costs are significantly lower only if charging at home is involved.

Electric cars don’t need oil changes, clutch replacements, or emissions checks. According to ADAC, typical maintenance savings range between 20 and 35% over 5 years. That said, battery cooling systems, brake fluid checks, and software updates still require attention, and not every garage is equipped to handle EVs.

Fully comprehensive insurance for EVs is currently about 9-27% more expensive than for their combustion equivalents. For example, a Hyundai Kona Electric costs 9% more to insure than its petrol version, while a VW ID.3 can be up to 27% more expensive compared to a Golf VIII. Currently, insurance costs for both EVs and ICE cars are rising, making the difference even more considerable.

Why? According to figures from the German Insurance Association (GDV) from July 2024, the repair of damage to an electric vehicle costs an average of one-quarter more than for a comparable combustion engine vehicle. Other studies suggest slightly different numbers, but the key takeaway is always the same: EVs tend to be more expensive to repair. As a result, fully comprehensive insurance for electric cars is often more expensive than for comparable petrol vehicles.

Back in March 2023, the resale values of three-year-old cars looked like this:

• Petrol cars: retained about 70% of their original value

• Diesel cars: retained about 68% of their original value

• Electric cars: retained just under 62% of their original value 

So, on average, electric cars were worth about 7.6% less than petrol cars after three years, even with similar mileage. Currently, though, electric cars are catching up in resale value.

Yes, it makes sense to buy a used electric car. Compared to petrol and diesel cars, electric vehicles have significantly fewer parts that wear out over time. That means less to worry about when buying a used EV.

There’s no timing belt, no spark plugs, no manual gearbox, no fuel system, no exhaust, no engine cooling system, and no need to replace various filters. And what doesn’t exist can’t break down.

A common concern is the battery, as it’s the most expensive part. However, recent tests show this worry is often exaggerated. The battery’s State of Health (SoH) usually stays strong even after 100,000+ km. Plus, if there is an issue, it’s usually just a matter of replacing individual cells, not the whole battery.

So you’ve found a used EV online. It looks great, and the price is right. But how do you know it won’t disappoint you a few months after you buy it? Here’s your answer:

• Buy from certified dealers. Dealers who are members of official trade associations offer more legal security and often provide better inspection records and warranties.

• Test the main battery’s health. Ask for a SoH battery report. Low battery capacity significantly affects range and resale value.

• Check the fast-charging capability. A CCS port is essential for fast DC charging. Older EVs might not have this feature, and retrofitting is often impossible.

• Ask for a recent inspection certificate. A fresh TÜV/Pickerl (or equivalent roadworthiness test) and a fully stamped service booklet are signs of a well-maintained car.

• Investigate nearby EV-certified workshops. This is especially important for those living outside a city. High-voltage systems require special training. So, make sure local mechanics are qualified to handle EV maintenance.

Even though you can buy an electric car without having an enormous salary, there are ways to make the purchase and maintenance even cheaper. Check them out!

If buying a new EV is a bit too much for your budget, there is always leasing and subscribing.

• Leasing lets you drive the latest EV models without paying a huge amount upfront. You pay a fixed monthly fee, which often includes extras like servicing, insurance, and sometimes even public charging.

• Subscriptions are more flexible. They normally allow you to switch cars, pause your contract, or cancel monthly. Perfect if you’re testing the waters or your mobility needs change frequently.

Charging at home is usually the cheapest option. If you drive regularly, installing a smart wallbox at your house or apartment building can pay off quickly. For example, our go-e Charger allows you to schedule charging for times with the lowest electricity prices, like overnight or during sunny hours, if you have solar panels. With dynamic tariffs, you can reduce your charging costs even further.

Be honest: do you actually need a spacious electric car with a huge trunk? If you mostly drive to work or for grocery shopping, a car with a range of 200-300 km might cover your needs perfectly. 

Models like the Fiat 500e, Mini Cooper E Essential Trim and Renault 5 E-Tech Electric are built for the city. They are easy to park, cheap to run, and super fun to drive. Some go-e employees who drive the Renault ZOE say they would trade any amount of range for the amazing acceleration feel of the small EV. And if you occasionally need a car for longer trips, renting is always an option. It also lets you try out different models over time.