Investigation reveals: Electric vehicles and traditional gasoline-powered cars are approaching equal cost
As for the typical purchase price, electric vehicles are still generally pricier than their internal combustion engine counterparts. However, this difference is decreasing, as revealed by a discount analysis. The price disparity has shrunk by approximately 1,000 euros compared to last month.
On the German new automobile market, the prices of electric vehicles and internal combustion engine vehicles are growing increasingly comparable. The price difference for the 20 most influential models has significantly reduced in October, as per the regular discount study conducted by the private Bochum-based institute "Center Automotive Research (CAR)".
On an average, electric vehicles cost around 6,600 euros more than their equivalent internal combustion engine vehicles, with an average price of 39,800 euros. This price gap has thus decreased by 920 euros compared to the previous month.
"Electric vehicles are becoming progressively more affordable," states study leader Ferdinand Dudenhöffer, anticipating further convergence in the coming months. This trend is a result of the stricter CO2 regulations of the EU, set to be enforced from next year. The automobile manufacturers are adapting to this regulation through price adjustments.
Various Strategies
The manufacturers are employing several methods. For example, the list prices of several significant electric vehicles, such as the Opel Corsa, VW ID3, Mini Cooper, and Tesla 3e, have been reduced. Conversely, there are fewer openly publicized discounts for electric models. On average, potential buyers can expect a 12.6 percent discount on the list price, while internal combustion engine vehicles offer an average discount of 16.5 percent.
For the price comparison, CAR has consistently considered the so-called transaction price. The discounts are subtracted from the list price.
Possible Increase in New Car Sales - Including Electric Models
Global demand for new cars may resurge - including those with electric powertrains. This is suggested by a recent survey conducted by the consulting and auditing firm EY. 40 percent of those surveyed expressed their intention to buy a new car by mid-2026, an increase of seven percentage points compared to the survey conducted a year ago.
For the study, 19,000 people in 28 countries were surveyed, including 1,000 in Germany. The survey was conducted in the summer.
A Quarter Would Opt for an Electric Model
24 percent of those planning to buy a new car stated that they were likely to purchase an electric vehicle. This was a slight increase compared to the previous year's survey, which saw only one in five expressing a preference for an electric car. Gasoline-powered vehicles remain the most popular, at 29 percent. Hybrid and plug-in hybrid vehicles account for 33 percent of potential buyers, while diesel vehicles account for 8 percent.
In Germany, 28 percent of those surveyed stated their intention to buy a new car within the next two years, a five percentage point increase compared to the previous year.
The results for the type of powertrain are similar to the global distribution: Electric vehicles are only slightly more popular, at 26 percent, even compared to the European average of 21 percent. There are also slightly more potential buyers for diesel vehicles. Fewer people would opt for hybrid vehicles.
The decrease in price disparity between electric cars and internal combustion engine vehicles is contributing to their growing equivalence in the market. According to the study, the average price difference between electric and internal combustion engine vehicles has decreased by 920 euros.
The trend of electric vehicles becoming more affordable is likely to continue due to stricter CO2 regulations enforced by the EU, prompting automobile manufacturers to adjust their prices accordingly.
(Note: The second sentence is a direct continuation and elaboration of the first one, focusing on the cause and likely future of the price decrease.)
