A new breed of EVs? EU paves the way for small, affordable electric cars
The new Small Affordable Car initiative would lower electric car prices and make them more accessible to more buyers
The European Union has signalled its intentions to help introduce a new breed of more affordable electric vehicles by announcing it will work with car makers on a scheme to help develop cheaper models.
Announced yesterday by EU President Ursula von der Leyen, the suggestion of a new Small Affordable Cars initiative comes just days after Stellantis boss Jean‑Philippe Imparato presented a series of demands from car manufacturers, headlined by a call for the EU to relax regulations around smaller cars to profitably develop and build a 15,000-Euro (£13,000) electric car with a range of around 70 miles.
“Millions of Europeans want to buy affordable European cars, so we should also invest in small affordable vehicles, both for the European market and to meet the surge in global demand,” said von der Leyen in her State of the Union address. “That is why we will propose to work with the industry on a new Small Affordable Car initiative.”
The EU president said Europe needs clean, efficient and lightweight cars that are affordable and built in Europe with European supply chains.
“We cannot let China and others conquer this market; no matter what, the future is electric and Europe will be part of it,” she concluded. “The future of cars, and the cars of the future, must be made in Europe.”
In response, Stellantis said it welcomed the announcement of the initiative.
“Affordable small cars mean cleaner air, safer roads, increased industrial production, and faster decarbonisation,” said the company in a statement. According to the group, there were 49 sub-15,000-Euro cars on sale in 2019, but that figure fell to just one in 2025. “Excessive regulation has driven up costs, making these cars almost impossible to produce profitably,” it said. “President von der Leyen’s initiative is both visionary and urgent. Now it’s time to turn ambition into action.”
Stellantis is calling for supercredits to encourage the development and purchase of smaller EVs, a cut in what it called “unnecessary constraints to improve affordability without compromising safety and connectivity”, and a new European small car category inspired by the tiny Japanese Kei cars, designed for Europe on common platforms to help profitability.
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