Electric Car Prices in Germany Rise Again as Subsidy Boosts Sales

Electric cars in Germany are set to become more expensive again, according to a study by the Center Automotive Research (CAR). The reason, CAR Director Ferdinand Dudenhöffer explained on Monday, is the government subsidy and the resulting increase in electric car sales. - AFP

Electric cars in Germany are becoming more expensive again, according to a study by the Center Automotive Research (CAR). The reason is the electric car subsidy and the resulting rise in electric vehicle sales, explained CAR director Ferdinand Dudenhöffer on Monday. Bavaria's Minister President Markus Söder (CSU) called for the subsidy to be extended to larger cars, "so that German manufacturers Mercedes, VW, Audi and BMW can benefit from it."

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How the Study Was Conducted

CAR examined the list prices, minus discounts, of the currently most common models, 25 new combustion-engine cars, 25 fully electric cars and 15 plug-in hybrids. According to the study, the market share of electric cars rose to 28.6 percent in June, discounts on electric cars fell slightly from 17.8 percent in June to 17.6 percent in July.

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Discounts on combustion models, by contrast, rose from 18.4 to 19.4 percent. Higher discounts on combustion vehicles were granted by manufacturers such as Audi, Opel and BMW, according to the study. They reached as much as 31.5 percent. "Those are already very high discounts," Dudenhöffer said.

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What Buyers Actually Pay

The transaction price, meaning the list price minus the discount, for the 25 best-selling combustion models averaged 32,302 euros in July, according to CAR. For electric cars, the average price was 34,665 euros, and for plug-in hybrids, with their dual drive system, 46,252 euros. "We expect that from 2027 onwards, increased offerings from Chinese carmakers will improve the price position of plug-in hybrids," Dudenhöffer explained.

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The Political Response

CSU leader Söder said on Sunday in the ARD summer interview that the coalition intends to address a revision of the EV premium in the autumn. On the subject of a new fuel discount, he was cautious: "That will become clear over the coming months." Söder also criticized the twelve-o'clock rule, saying that, in his view, it does not work and has had little effect.

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