EV buyers in Germany receive more value for money despite higher average purchase prices as cheaper models and better battery technology transform the market.
The price of electric vehicles (EVs) in Germany has decreased during the past five years, even while the average price has gone up, according to a study by the international council on clean transportation (ICCT) and Fraunhofer ISI that Reuters reported on.
From 2020-2025 the price of comparable battery electric vehicle (BEV) models decreased by approximately 18 per cent when taking inflation into account. By comparison, internal combustion engine (ICE) vehicles have had a price increase of about 2 percent in the same time frame.
The price increases for EVs, which Reuters claims is not due to price increases of similar cars, reflect consumer interest in larger and more luxurious models. Median nominal price of BEVs rose by 42 percent to about 53,000 while prices of comparable ICE models rose by only 15 percent.
The number of available models in Germany for BEVs more than quadrupled from 2020-2025. By contrast the number of ICE models decreased to 194 models from 211. During the same time frame, global battery prices in adjusted terms decreased 35 to 37 per cent, which is what allowed automakers to enhance car performance instead of having to reduce price.
The average driving range has been elevated by about one-third, indicating that decreases in battery prices were utilised in technological advances and vehicle upgrades rather than being directly passed on as reduced prices.
“Models of battery electric vehicles became more affordable in Germany between 2020 and 2025”, the study Reuters refers to concluded.
