Battery electric vehicle (BEV) prices in Germany fell by around 18% between 2020 and 2025, despite an increase in average list prices, according to a joint study by the International Council on Clean Transportation (ICCT) and the Fraunhofer Institute for Systems and Innovation Research (Fraunhofer ISI).
The study, based on more than 100,000 vehicle data points across six passenger vehicle segments, found that while the average list price of EVs rose from around €37,000 in 2020 to €53,000 in 2025, the increase was driven by consumers shifting towards larger and more premium electric models rather than rising prices for comparable vehicles.
After adjusting for factors such as vehicle weight, power output, driving range, and inflation, researchers found that comparable electric vehicles were around 18% cheaper than internal combustion engine (ICE) vehicles, compared to ICE vehicles being about 2% more expensive over the same period.
The report also found that global battery prices declined significantly between 2020 and 2025. However, manufacturers used much of those savings to improve vehicle specifications, with the average driving range of electric cars increasing by nearly one-third during the period.
The study noted that the number of battery electric models available in Germany rose from 38 in 2020 to 159 in 2025, while ICE models declined from 275 to 194, highlighting the growing variety of electric vehicles available to consumers.
