Germany car market sees sharp decline in vehicles under 20,000 euros

The availability of new vehicles priced under 20,000 euros in Germany has decreased significantly. According to an ADAC analysis, only 16 models currently fall below this price threshold, compared to 35 models in 2021.

Notably, none of the remaining 16 affordable models are produced by German or Japanese manufacturers. The cheapest new car currently available in Germany is the Dacia Sandero, priced at approximately 13,590 euros. The most affordable German option, the VW Polo, has crossed the threshold with a starting price of 20,380 euros.

Rising costs across the value chain and increased technical requirements mandated by the EU are cited as primary drivers for these price increases. However, the electric vehicle segment shows a different trend: while no pure electric cars were available under 20,000 euros five years ago, three such models are now on the market.

In Switzerland, comparisons show that many of the same budget models are available at lower prices than in Germany. Meanwhile, discussions regarding German electric vehicle subsidies continue, with consumer advocates suggesting that government incentives should be more strictly focused on lower-priced models to assist middle- and low-income households.