A recent joint study by the International Council on Clean Transportation (ICCT) and the Fraunhofer Institute for Systems and Innovation Research ISI finds that, between 2020 and 2025, the real average purchase price of electric vehicles (EVs) in Germany fell by approximately 18 percent, even though nominal list prices rose from around €37,000 to €53,000. This apparent contradiction reflects a shift in the model mix toward more mid- and upper-segment vehicles, which now account for 73 percent of available EVs. When adjusted for vehicle attributes such as weight, power output, driving range and inflation, prices for comparable electric models dropped, while real prices for vehicles with internal combustion engines increased by about 2 percent over the same period.
The study, which analyzed more than 100,000 individual data points sourced from the ADAC database across six segments ranging from small cars to luxury vehicles, also highlights a significant expansion in model variety. The number of electric models offered in 2025 rose to 159—more than four times the 38 models available in 2020—while offerings of combustion-engine models declined from 275 to 194. However, in the mini and small-car segment, a gap remains: 19 electric models are on the market compared to 35 combustion models in 2025.
Battery pack costs fell nominally by 21–24 percent—from approximately €165–185 per kilowatt-hour to €130–140 per kilowatt-hour—which corresponds to a 35–37 percent reduction after correcting for inflation. Although these savings have not yet been fully reflected in lower EV list prices, the average driving range of battery electric vehicles increased by about one-third over the study period, suggesting that cost reductions have been reinvested in performance improvements and research and development.
“Our findings show that battery cost declines have room to translate into further price reductions for consumers,” said Prof. Dr. Patrick Plötz of Fraunhofer ISI. ICCT Europe’s Managing Director, Dr. Peter Mock, added, “Electric vehicles today offer higher ranges and more power, while their real costs have fallen.” Kyle Morrison of the ICCT noted that stable regulatory frameworks, including long-term CO₂ fleet targets, are essential to support electrification across all vehicle segments and to secure battery production investments.
Source: Fraunhofer ISI Press Release
