Battery electric vehicle (BEV) models became more affordable in Germany between 2020 and 2025, even though the average price of electric cars increased during the same period, according to data from the International Council on Clean Transportation (ICCT) and Fraunhofer ISI.
The study found that, after adjusting for inflation, the prices of comparable BEV models declined by around 18%, while prices for comparable internal combustion engine vehicles (ICEVs) increased by about 2%.
Despite this, the median nominal price of a BEV rose by 42% to approximately €53,000, compared with a 15% increase for ICEVs. Researchers said the rise in average prices reflects a shift in the market towards larger and more premium electric vehicles rather than an overall increase in vehicle costs.
The range of electric vehicle options also expanded significantly during the period. The number of available BEV models more than quadrupled to 159, while the number of combustion engine models declined to 194.
The report also noted that inflation-adjusted global battery prices fell by 35%–37% between 2020 and 2025. However, the reduction in battery costs had only a limited impact on overall vehicle prices.
Instead, manufacturers appear to have used those savings to improve vehicle performance. On average, the driving range of electric vehicles increased by about 1/3, offering buyers greater efficiency and longer travel distances.
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