German electric car prices drop 18% (2020‑2025)

A joint study by the Fraunhofer Institute for Systems and Innovation Research (ISI) and the International Council on Clean Transportation (ICCT) analysed more than 100 000 vehicle records from the ADAC database for the German market between 2020 and 2025. After adjusting for inflation, the list prices of comparable electric‑vehicle (EV) models fell by 18 %, while internal‑combustion‑engine (ICE) car prices rose by about 2 %. The nominal median list price of EVs rose 42 % to roughly €53 000 because the market shifted toward larger, higher‑priced models – the number of EV models increased from 38 in 2020 to 159 in 2025, with 73 % now in the mid‑to‑upper‑mid‑range. Battery costs fell 35‑37 % (≈€130‑140 /kWh), driving the real‑price decline and allowing EVs to offer greater range and power at lower per‑kilometre costs. “Our results show that EVs now provide longer range and more power while real prices of comparable models have fallen,” said Peter Mock of the ICCT. Researchers expect price parity with ICE cars by around 2030 as battery cost reductions continue.