EV Prices Drop 19% in Germany, Yet Gaps Persist for French and German Models
A new study by Germany's CAR Institute reveals a narrowing gap in the price of electric vehicles (EVs) compared to their conventional counterparts. However, significant disparities persist, particularly among French compact cars and certain German models.
The study finds that EVs have seen an average price cut of 19% in Germany, outpacing the reductions for combustion-engine cars. Despite this, the price gap between EVs and conventional models remains at €1,589, the lowest since records began. This trend is also reflected in Austria, though with some variations due to market size and tax policies.
Manufacturers are increasingly pricing new electric models lower than their predecessors. For instance, the all-electric BYD Seal U undercuts its hybrid version, the Seal U DM-i, by €2,090. However, Volkswagen's ID.3 is still €7,900 more expensive than the Golf 1.0 TSI. BMW, on the other hand, shows the closest price alignment, with the iX1 and X1 differing by €686, and the iX2 and X2 differing by €1,555.
French compact cars, however, continue to exhibit wide price gaps. The Peugeot e-208 is €7,656 more expensive than the Peugeot 208, while the Citroën e-C3 is €5,926 pricier than the standard C3.
While the price gap between electric and conventional vehicles in Germany is narrowing, significant disparities remain, particularly among French compact cars and certain German models. Manufacturers are increasingly aligning the price of their cars, but there's still work to be done, especially at Volkswagen. As the price of EVs continues to drop, the market is reshaping, with new electric models challenging bestseller lists and lowering average price points.
