The average price of newly registered electric cars in Germany has witnessed a significant increase this year. According to the Center of Automotive Management (CAM) and EV website electrive, the average price rose by around 4,000 euros to reach 56,669 euros. This development has had an impact on the transition to climate-friendly mobility.

The Challenges of Rapid Market Ramp-up

With the current range of models available in Germany, achieving a rapid market ramp-up of electromobility seems to be a difficult task. As stated by the CAM, the number of electric models in the country grew from 105 in 2023 to 134 in 2024. However, SUVs dominate the market, accounting for more than half (56.7% or 73 models). On the other hand, the number of mini and compact car models, which are crucial for the ramp-up, is declining. There were only seven models in these categories this year compared to 12 last year. 1: The dominance of SUVs in the electric car market poses a challenge. These larger vehicles have a different customer base and usage pattern compared to mini and compact cars. The demand for SUVs may be driven by factors such as perceived safety and space, but it also affects the overall market dynamics and the ability to achieve a widespread adoption of electric vehicles. 2: The decline in the number of mini and compact car models is a cause for concern. These smaller cars are more accessible and affordable for a wider range of consumers. Their absence from the market makes it harder to attract customers with smaller budgets and encourages a shift towards more expensive SUV models. This trend needs to be addressed to ensure a more inclusive and sustainable growth of the electric car market.

The Impact of Technology Improvements

The average range of electric cars increased to 463 kilometres according to the WLTP standard, and the average DC charging power rose to 156 kilowatts (KW). These improvements in technology are positive developments, but they also contribute to the increase in average prices. As smaller models are no longer available, the average range and charging power of the remaining models are higher, which leads to a higher overall average price. 1: Technology improvements have undoubtedly enhanced the performance and usability of electric cars. Longer ranges and faster charging times make electric vehicles more practical for daily use and long-distance travel. However, these improvements come at a cost, and it is important to find a balance between technological advancements and affordability. 2: The removal of smaller models from the market highlights the need for manufacturers to continue developing a diverse range of electric car models. Different customers have different needs and preferences, and a one-size-fits-all approach may not be sufficient. By offering a variety of sizes and types of electric cars, manufacturers can cater to a wider customer base and promote a more sustainable transition to electromobility.

Price Trends in Different Markets

While e-car prices in Germany rose by an average of 7.5 percent, they declined by five percent in China. This shows that the price dynamics vary in different markets. In Germany, top model prices even rose as much as 14.5 percent. 1: The differences in price trends between Germany and China reflect the unique characteristics and market conditions of each country. In Germany, the higher prices may be influenced by factors such as higher production costs and stricter regulations. In China, on the other hand, the competition and government policies may be driving prices down. 2: These price differences also highlight the importance of understanding the local market dynamics when it comes to electric cars. Manufacturers need to tailor their pricing strategies and product offerings to suit the specific needs and preferences of each market. This will help them achieve better sales and market penetration in different regions.

The Future Outlook and EU Fleet Emission Targets

CAM head Stefan Bratzel believes that the further price increase of electric models is a concern for the new market phase of electromobility. After the tech-savvy early adopters, customer segments with smaller wallets need to be addressed. However, he expects a significant price reduction in the coming months as manufacturers strive to meet tighter EU fleet emission targets. 1: Meeting the EU fleet emission targets is a crucial goal for Germany and other European countries. Electric vehicles play a vital role in achieving these targets, but the high prices of electric cars can be a barrier for many consumers. Manufacturers need to find ways to reduce costs and make electric vehicles more affordable without compromising on quality and performance. 2: The coming months will be critical for the electric car market as manufacturers work towards reducing prices and increasing sales. This will require a combination of technological advancements, economies of scale, and government support. If successful, it could lead to a significant boost in the adoption of electric vehicles and a faster transition to climate-friendly mobility.