Berlin, July 20, 2026

According to a new study, electric cars in Germany became significantly cheaper in inflation-adjusted terms between 2020 and 2025, while combustion-engine vehicles saw a slight price increase.

Inflation-adjusted list prices for electric cars fell by 18 percent between 2020 and 2025. Over the same period, prices for combustion-engine vehicles rose by 2 percent in inflation-adjusted terms. This is according to a joint study by the Fraunhofer Institute for Systems and Innovation Research (ISI) and the International Council on Clean Transportation (ICCT), which was made available to the German Press Agency in advance.

For their analysis, the researchers evaluated more than 100,000 individual entries from an ADAC database. Since comprehensive transaction prices were not available, they relied on list prices. The authors point out that significant distortions are not to be expected from this approach.

Methodology: Comparable models over time

To enable a fair comparison, the researchers compared the same or comparable vehicles over time. Patrick Plötz, a professor at ISI, explained the methodological approach: „Man würde also Kirschen mit Äpfeln vergleichen. Um das zu verhindern, haben wir versucht, gleiche oder vergleichbare Fahrzeuge über die Zeit zu betrachten." Using this method, list prices for electric cars remained relatively stable, while prices for combustion-engine vehicles rose.

Peter Mock of the ICCT pointed to the technical development of the vehicles: „Unsere Ergebnisse zeigen, dass sich der Markt für Elektroautos in den vergangenen Jahren deutlich weiterentwickelt hat. Die Fahrzeuge bieten heute im Durchschnitt größere Reichweiten und mehr Motorleistung, während die realen Preise vergleichbarer Modelle gesunken sind."

Outlook: Price parity expected by 2030

Plötz sees further potential for falling prices. „Die gesunkenen Batteriepreise sind noch nicht vollständig weitergegeben worden. Außerdem sollten auch steigende Stückzahlen und der Druck auf die Hersteller durch CO2-Grenzwerte helfen", he said. The growing range of offerings is also changing the picture: „Der mittlere Preis ist dadurch gestiegen, es sind aber auch ganz andere Fahrzeuge", said Plötz.

If the current trend continues, electric cars in Europe should cost about the same as comparable combustion-engine vehicles by around 2030, said Plötz. At price parity, electric cars would then also be clearly cheaper in terms of total cost per kilometer. Experience from other markets has shown that at equal prices, electric cars would reach a market share of around 50 percent.

Industry context and assessments

The study fits into a broader discussion about price trends in the automotive sector. Industry observers such as Ferdinand Dudenhöffer had identified rising discounts on key e-car models in recent years. This trend broadly aligns with the findings of the Fraunhofer and ICCT researchers.