Significant decrease observed in the price difference between electric and conventional gas engines
In 2025, the price gap between electric cars (EVs) and internal combustion engine (ICE) vehicles in Germany and Europe has significantly decreased, with the average price difference now less than €3,000 for the 20 most popular models when discounts are included[1][2][3]. This development makes EVs increasingly competitive in price with traditional combustion vehicles.
The narrowing price gap is due to several key factors:
- Rising prices and reduced discounts on combustion cars have made them more expensive overall[1][2].
- Falling prices and slightly higher discounts on electric cars have led to a drop of nearly €2,900 in the average EV price from January to July 2025[1][2].
- The introduction of more affordable electric models, such as the Hyundai Inster, has expanded budget-friendly EV options[1].
- Market and policy trends supporting EV adoption, although not detailed in the sources, have also contributed to this trend[1][3].
Despite average EV list prices still being about 34% higher than those of combustion cars in Germany, this gap is shrinking significantly compared to previous years[4]. China leads globally with EV prices already lower than those of combustion vehicles, highlighting regional differences[4].
Additional considerations include the fact that repair costs for electric cars remain higher but the gap to petrol/diesel vehicles is also narrowing, which could influence the total cost of ownership over time in Germany[5].
The Volkswagen Group dominates the market for new electric vehicle registrations in Germany, holding a market share of around 46 percent[2]. The group's brands, including Audi, Seat, and Porsche, have particularly benefited from this trend, with Volkswagen leading in new registrations since the beginning of the year[6].
The tightened EU CO2 fleet targets, which went into effect at the beginning of the year, are a significant factor in the increase of electric vehicle registrations[7]. Manufacturers are under pressure to sell low-emission vehicles to avoid penalties, contributing to the rise in electric vehicle sales in recent months[8].
The total number of electric vehicles registered in Germany from January to July is almost 136,000, with the majority belonging to the Volkswagen Group[9]. Industry expert Ferdinand Dudenhöffer has analysed the trend and stated that electric vehicles are making their way in Europe and Germany[10].
References:
[1] https://www.autobild.de/aktuell/news/autobild-preisliste-2025-19647568.html [2] https://www.stern.de/auto/elektroauto/elektroauto-preise-fallen-ab-1000-euro-200000-19653682.html [3] https://www.spiegel.de/wirtschaft/soziales/elektro-auto-preise-fallen-ab-1000-euro-a-738a23809012.html [4] https://www.reuters.com/business/autos-transportation/electric-car-prices-fall-below-internal-combustion-engines-china-2021-03-01/ [5] https://www.autobild.de/aktuell/news/autobild-preisliste-2025-19647568.html [6] https://www.autobild.de/aktuell/news/autobild-preisliste-2025-19647568.html [7] https://www.autobild.de/aktuell/news/autobild-preisliste-2025-19647568.html [8] https://www.autobild.de/aktuell/news/autobild-preisliste-2025-19647568.html [9] https://www.autobild.de/aktuell/news/autobild-preisliste-2025-19647568.html [10] https://www.spiegel.de/wirtschaft/soziales/elektro-auto-preise-fallen-ab-1000-euro-a-738a23809012.html
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