European manufacturers may remain competitive and profitable by creating compact electric cars "made in Europe" with a starting price of 25,000 euros. According to a new study by Transport & Environment, an independent European environmental organization, it would be feasible to electrify the mass market with B-segment vehicles by 2025 due to declining production costs and battery prices. The availability of smaller, less expensive electric vehicles might be essential for the acceptance of European-made electric vehicles, a critical factor when weighed against the threat of Chinese enterprises entering Europe. The T&E study relies on analysis conducted by Syndex, a consulting firm. According to the scenario illustrated in the report's "Favorable Market Conditions," European manufacturers might achieve a fair profit margin of 4% on small electric cars manufactured in Europe by 2025. In this scenario, battery prices would fall to $100 per kWh, as predicted by BloombergNEF and other organizations. The report takes into account other direct cost reductions while maintaining industry-wide indirect cost and margin expectations. The car in the B category would feature a 40 kWh LFP battery with a range of 250-300 km.