Why Affordable Electric Cars In 2025 Are Feasible

of commercial and private drivers that need cars in their daily work and life. Many in the industry are talking about a €25,000 battery electric car , before subsidies, as the gold standard for mass affordability. But car prices are determined by many factors, including their size and market segment, the costs of components and materials, as well as the corporate mark-ups and profit margins.

This is not a premium segment phenomenon. In fact, the SUV share has grown fastest in the middle segment, which traditionally included medium-sized hatchbacks and sedans such as the VW Golf and Peugeot 308. This segment has the highest share of SUV sales today, representing over half of all SUV sales in the EU. The smaller segment, which includes cars such as the Peugeot 208 and the Opel Corsa, accounts for the second largest share, at 30%.

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