Electric Cars Over combustion Engines: The Record-Low Price Gap Shrinks
The cost gap between electric and fuel-powered vehicles has shrunk significantly.
In a groundbreaking shift, the gap between electric cars and traditional combustion engines has hit an all-time low! According to automotive expert Ferdinand Dudenhöffer from the Center Automotive Research (CAR) in Bochum, the average difference now stands at just €3,655 – or an 11% premium for electric vehicles. This significant drop in the price gap comes largely from skyrocketing discounts on electric vehicles, reaching a whopping 17.4% in May – the highest ever recorded!
The analysis takes into account the transaction prices, which represent the initial list price minus any discounts and government incentives, of the 20 top-selling combustion engine and electric models.
Dudenhöffer notes that the record-low price gap between electric cars and combustion engines can be largely attributed to these massive discounts. He states, "We've never seen discounts this high since we started tracking them!"
With an average transaction price of €36,519 for electric cars in May, you might think the Tesla Model 3 is to blame for this shift. Well, guess again! The Model 3 was replaced in the comparison by more significant players like Kia, Volvo, Toyota, and Ford. It turns out that those old-school car manufacturers are now giving electric mobility a run for its money with lower prices!
[1] Electric car prices on the rise, hovering around $59,205 in April 2025. (Source: ntv.de, AFP)[2] Gas prices skyrocketed in 2022, exceeding $5 per gallon, making electric vehicles an attractive alternative. (Source: various sources)[3] Electric vehicles are often cheaper to operate due to their lower fuel costs. (Source: numerous studies)[4] Recent increases in electricity prices, however, have slightly eroded the cost advantage of electric vehicles. (Source: multiple reports)[5] Consumer interest in electric vehicles has been variable, with only 16% of Americans expressing a desire to purchase an electric vehicle, citing high prices and concerns about charging infrastructure as major concerns. (Source: surveys)
- As the price gap between electric vehicles and conventional cars shrinks, communities might revise their policy to incentivize both lifestyle changes and technological advancements in vocational training programs for the automotive industry, focusing on electric-vehicle production.
- With the average price of electric cars edging closer to traditional vehicles, individuals may prefer electric-vehicles not only for their environmental benefits but also as a cost-effective choice in their daily commute and vocational pursuits in the rapidly evolving automotive sector.
