Electric Vehicles Close the Price Gap with Gas-Powered Cars in Germany
The price difference between battery-electric vehicles and those with internal combustion engines has reached a record low in Germany. According to Ferdinand Dudenhöffer, an automotive expert, the real price of electric vehicles has never been closer to that of their gas-powered counterparts. Dudenhöffer’s analysis, which includes discounts, shows that in May, an electric vehicle was just €3,655 more expensive than a comparable gas-powered car. This is a significant decrease from the €8,693 premium that electric vehicles commanded just a year ago.
Buyers of electric vehicles can now expect nearly the same price discounts as those interested in traditional gas-powered cars. While electric vehicle discounts were significantly lower at the start of the year, they reached 17.4 percent in May, roughly in line with the discounts offered on gas-powered cars. The real price for the average consumer has thus dropped to €36,519, just 11 percent more than the average gas-powered car.
Dudenhöffer predicts that German manufacturers will showcase strong sales figures for their new electric models at the IAA motor show in the late summer, which will further narrow the price gap with gas-powered cars. Additionally, the German government’s plans to shorten the depreciation period for electric vehicles used as company cars may make these models more attractive to businesses.
“With stronger demand for company cars, existing production facilities for electric vehicles can be more efficiently utilized” Dudenhöffer forecasted, which could lead to more efficient production and, in turn, lower prices.