Electric cars take a quarter of major European markets – Serbia has a special reason to watch this trend

For Serbia, this shift has additional significance. While electric vehicle sales are growing rapidly across Europe, models designed precisely for this market are already being produced in Kragujevac – the electric Fiat Grande Panda and Citroën ë-C3.

One in four new cars is electric

During July, 224,266 fully electric cars were registered across the 16 European markets covered by the data, representing an increase of 13.6% compared with the same month of the previous year.

Since the beginning of 2026, the number of new electric cars registered across these markets has approached 1.5 million, around 30% more than during the same period last year.

Differences between individual countries remain significant. Electric cars accounted for around 35% of new registrations in France in July, while their share in Germany reached 29.3%.

Denmark is far ahead of most of Europe – as much as 80.1% of new cars registered during July were fully electric.

On the other hand, markets such as Italy, Poland and the Czech Republic still lag considerably behind. The share of electric vehicles stood at 5.9% in Italy, around 4% in Poland and 7.5% in the Czech Republic.

More affordable electric cars are changing the market

One reason for the acceleration in sales is not only stricter European regulation. Electric cars are becoming available in segments that in previous years were dominated by petrol-powered vehicles and hybrids.

An increasing number of smaller and relatively affordable electric models are entering the market, while high fuel prices and government subsidies are further changing the cost equation for buyers.

Reuters notes that growth is particularly visible in markets with strong support programmes for electric vehicle purchases. At the same time, manufacturers such as Renault, Stellantis and other European companies are trying to offer electric cars at prices increasingly close to those of conventional city cars.

Kragujevac is becoming an important part of Europe’s EV story

This is where the European trend directly connects with Serbia.

The Stellantis plant in Kragujevac currently produces electric, hybrid and petrol versions of the Fiat Grande Panda, as well as the electric Citroën C3.

The factory employs more than 4,500 workers, and increased production has led to the introduction of three-shift operations as well as additional weekend shifts. Following a two-week collective summer break at the beginning of August, production resumed on August 17.

The increase in production is already visible in export figures. According to data published at the beginning of August, Serbia’s automotive industry recorded strong growth, while car exports increased sixfold over the course of a year. A significant part of that increase is directly linked to serial production in Kragujevac.

This means that growing demand for smaller electric cars in France, Germany, Italy and other European countries is no longer simply news from distant markets for Serbia. It can directly affect production volumes and exports from the country.

Serbia continues to subsidise electric vehicle purchases

The government is also trying to encourage electrification on the domestic market.

Serbia’s 2026 budget allocates 170 million dinars for subsidies for the purchase of electric vehicles. Depending on the vehicle category, subsidies range from 250 euros to a maximum of 5,000 euros.

For the first time this year, applications are submitted electronically through the eUprava portal. Applications can be submitted from March 1 until September 30, 2026, or until the allocated funds are exhausted.

For a buyer considering a new electric car, a subsidy of up to 5,000 euros can already significantly change the price comparison between an electric model and an equivalent petrol-powered vehicle.

What does this mean for Serbian drivers?

The most important change may not be that electric cars are setting new sales records, but that they are gradually moving from a specialised niche into the mass market.

When electric vehicles begin to account for a quarter of new registrations across major European markets, the consequences eventually reach Serbia as well.

More new models will become available, followed by a larger number of used electric cars entering the Serbian market from Western European countries. At the same time, issues such as used-vehicle battery condition, charging speed, charger availability and the real cost of ownership will become increasingly important.

There is another important distinction for Serbia: the country is not only a buyer of vehicles emerging from Europe’s transition to electric mobility. Some of those vehicles are already being produced here.

If the current growth in European demand continues, the Fiat Grande Panda and Citroën ë-C3 could help make Kragujevac one of the more prominent centres for the production of affordable electrified cars in this part of Europe.

August 30, 2026