ore than 1.1 million electric cars were sold in the European Union last year, up by a quarter to a record 12.1 percent share of the market.
Electric cars are on average much more expensive than their petrol equivalents, starting from about 35,000 euros ($38,000). This puts them out of reach for many drivers, despite heavy subsidies.
But Tesla announced price cuts of up to 20 percent in Europe and the US in early January, quickly followed by a similar move from Ford.
Elon Musk's Tesla remains the biggest seller of electric cars globally, shifting 1.3 million units in 2022, driven by its Model Y SUV. It predicts a 37 percent increase this year.
In Europe, manufacturers could follow a similar route to gain market share, but also in order to comply with increasingly stringent European CO2 emission standards, according to German analyst Matthias Schmidt.
Traditional auto giants like Volkswagen and Stellantis group -- which owns Peugeot and Jeep -- are stepping up their launches of electric models.
Luxury brands such as Rolls Royce and Ferrari are also planning to launch their first battery-powered models soon.
"2022 was a problem of supply, (but) we're likely to see a complete switch," he said.
"If (manufacturers) start to panic, we're likely to see more and more cuts."
Producers could also react to Chinese manufacturers ramping up production, with plans to produce in Europe at a cheaper price.
Concern about battery life remains one of the main factors that deters drivers from switching to electric vehicles.
Most are limited to a few hundred kilometers and recharging can take anything from 20 minutes to several hours depending on the terminal.
This means the development of a network of fast and accessible terminals for charging is crucial for longer journeys.
The EU will need 3.4 million charging points by 2030, according to a report by consulting firm McKinsey, with updated power grids to cope.
This could cost some 240 billion euros, with companies including Fastned and Ionity ramping up investment in charging stations.