Germany’s EV Market Expands as Comparable Prices Fall 18%
Synopsis
The number of battery electric models available in Germany more than quadrupled between 2020 and 2025, while inflation-adjusted prices for comparable vehicles declined.
Key Highlights
- Inflation-adjusted prices for comparable EV models fell by 18% in Germany between 2022 and 2025.
- Buyers also gravitated toward larger, more expensive models, the median BEV price increased 42% to €53,000.
- The number of available BEV models more than quadratic two 159 while combustion models fell to 194.
Battery electric vehicles (BEVs) were cheaper in Germany for buyers than they had been five years ago, even as their average selling prices have increased, as per new research from the International Council on Clean Transportation (ICCT) and Fraunhofer ISI.
Researchers noted that, between 2020 and 2025, the inflation-adjusted prices for comparable electric vehicle models plummeted by approximately 18% while the prices of new internal combustion engine vehicles (ICEVs) increased by roughly 2%.
Average Prices Rose as Larger Models Became Popular
However, like-for-like prices fell over the period between spring 2022 and March 2023, the median nominal price of a BEV rose 42% to around €53,000. The median price of ICEVs increased by 15% over the same period, which is quite a contrast.
The rise in prices mainly shows that market shares have become much heavier in favour of the larger and more expensive electric vehicles rather than that similar models are simply being offered at higher prices, the researchers said.
More Models and Better Performance
In Germany, the number of battery electric vehicle models offered increased more than quadrupled from 38 to 159; however, within combustion engine types combined, the number of available models dropped from 207 to 194.
Battery prices around the world, after inflation affecting components and other costs, fell as much as 37%, but that savings had only a slight effect on vehicle prices.
The manufacturers achieved much of the cost savings by increasing electric driving range, which improved by about a third on average over that same five-year period instead.
Source: Reuters
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