Dudenhöffer Warns: Price Gap Between EVs and Petrol Cars Widens Again

A recent study warns that the price gap between electric vehicles and their internal combustion engine counterparts is widening once again, after automakers reduced discounts on EVs in the German market during May.

According to the monthly new car market report from the Center for Automotive Research (CAR), this reduction in discounts is a direct result of government subsidies that began retroactive disbursement this month for vehicles registered during the current year.

Study author Ferdinand Dudenhöffer stated: 'It seems that automakers are testing the market,' adding that the gap in actual purchase prices between electric cars and internal combustion engine vehicles has begun to widen again, contrary to the previous trend.

Based on market data for the top 20 best-selling electric cars, average discounts dropped from 19.5% in January to 18.6% currently. As a result, electric vehicles are now on average €1,971 more expensive to purchase compared to a similar internal combustion engine model. These figures do not include government subsidies.

The CAR report noted that discounts have particularly declined for small electric cars, which are more likely to align with the requirements of households eligible for government support.

The subsidy covers the purchase or leasing of new electric vehicles, certain plug-in hybrids that run on both electricity and fuel, as well as electric vehicles equipped with range extenders—small combustion engines that help increase the driving range of an electric car.

To qualify for the subsidy, the vehicle must have been registered since January 1, 2026. The amount of government aid depends on the vehicle type, household income (which must not exceed €80,000), and the number of family members, ranging between €1,500 and €6,000. The subsidy is limited to private cars and does not cover company vehicles. The allocated funds are expected to support up to 800,000 vehicles.