- Research Shows: Electric Vehicle Discounts Less than Conventional Gasoline Vehicles' Offers
Individuals buying electric vehicles (EVs) currently pay an extra 21% on average for an EV compared to a similar gasoline-powered car, as per a study by industry expert Ferdinand Dudenhöffer. This is attributed to higher initial costs and lesser discounts offered for EVs in contrast to gasoline-powered vehicles, rendering the lesser market share of EVs in Germany reasonable.
Dudenhöffer contrasted the net list prices (factoring discounts) of 20 significant EV models with their gasoline-equipped counterparts, computing the cost a private buyer would pay for a new vehicle. These discounts were calculated for August using online dealerships. The typical list price for EVs amounted to €45,040, with a discount of 12.9%, translating to €39,236 after deductions. In contrast, the gasoline vehicle had a list price of €38,228, a discount of 15.0%, and eventually retailed at €32,355.
EU customs taxes incorporated
Notably, German luxury car manufacturers, such as BMW, maintain a relatively minor price disparity between EVs and gasoline-powered vehicles. On the other hand, EVs from Opel or Peugeot are substantially more expensive than their counterparts running on gasoline. In August, the electric Opel Corsa was €13,633 (79%) pricier than its gasoline version, whereas the fully electric Opel Mokka incurred an additional €9,411 (35%).
Similar price disparities were observed for Peugeot, Nissan, and Chinese automakers. The electric MG ZS was €12,843 (75%) costlier than its gasoline counterpart, implying that Chinese manufacturers appear to have already integrated EU customs taxes.
"Too expensive for the average customer"
Nonetheless, these price disparities make EVs inaccessible for the average consumer. Over the initial seven months of the year, Opel and Peugeot managed to sell just 5.1% of their vehicles in Germany with full electric power. As a whole, the market share from January to July stood at 12.2%, with BMW accounting for 16.7%. Dudenhöffer attributes this to the smaller price disparity. For instance, the BMW X1 boasts a price disparity of only €2,260 (6%). Similar findings were made for the compared Mercedes models.
The substantial price disparities are most likely the primary factor responsible for the sluggish sales of electric vehicles, as evidenced by the expiration of purchasing incentives by the end of 2023: "Until the end of 2023, the lack of charging stations did not hinder purchasers from securing EVs. However, the termination of incentives resulted in a slowdown," writes Dudenhöffer.
Although German luxury car manufacturers like BMW maintain a relatively minor price disparity between their EVs and gasoline-powered vehicles, the overall cost of electric vehicles is still significantly higher compared to traditional cars. For instance, the fully electric BMW X1 has a price disparity of only €2,260, which is less than many other EVs in the market.
Despite BMW's efforts to make electric vehicles more affordable, the high initial costs and lesser discounts offered for EVs still make them less attractive to the average consumer, contributing to their lesser market share in Germany.
