Electric car prices in Germany fell 18% in five years

Electric car prices in Germany have seen a significant decrease over the past five years, according to a joint study by the International Council on Clean Transportation (ICCT) and the Fraunhofer Institute for Systems and Innovation Research (ISI). Between 2020 and 2025, the inflation-adjusted purchase prices for electric vehicles (EVs) dropped by 18 percent.

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The vehicles offer greater ranges and more motor power on average today, while the real prices of comparable models have fallen.

This trend contrasts sharply with internal combustion engine (ICE) vehicles, whose prices saw a modest increase of approximately 2 percent over the same period. The study also highlights a substantial diversification of the EV market, with the number of available models more than quadrupling. While the average list price of EVs rose from around 37,000 euros to approximately 53,000 euros between 2020 and 2025, researchers attribute this to a significant increase in the proportion of mid-range and upper-mid-range models, which now constitute 73 percent of all EV offerings.

"When individual models are observed over time, and vehicle characteristics such as weight, motor power, and range, as well as inflation, are taken into account, the prices of comparable electric vehicles decreased by around 18 percent in the same period," the ICCT and ISI stated. This finding suggests that despite the rise in average list prices, the underlying cost of comparable EVs has fallen.

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Furthermore, increasing production volumes and the pressure on manufacturers due to CO2 limits should also help.

Experts believe prices could continue to decline. Peter Mock of the ICCT noted that average ranges and motor power have increased while real prices for comparable models have decreased. Patrick Plötz from ISI added that the full impact of falling battery prices has not yet been passed on to consumers. Increased production volumes and pressure from CO2 limits are also expected to drive prices down further. Plötz projects that by approximately 2030, EVs in Europe could cost the same as comparable ICE vehicles, making them significantly cheaper in terms of total cost per kilometer.

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By about 2030, electric cars in Europe are likely to cost the same as comparable combustion engine vehicles.