Last news in Fakti

Why are electric cars so much more expensive in Germany?

The main reason is that there is very strong competition between manufacturers in China

Jan 12, 2026 19:35 82

Why are electric cars so much more expensive in Germany?  - 1

Electric cars in Germany are nearly 50% more expensive than in China. A car from a Chinese manufacturer can be purchased there without any problems for 15,000 euros. What is the reason for the large price differences?

In Germany, electric cars are offered at significantly higher prices than in China. A recent comparison conducted by the Center Automotive Research (CAR) in Bochum shows that for 30 comparable electric models, German buyers pay an average of 47% more than consumers in China.

While in China the average price for an electric car is 29,765 euros, in Germany the average price is 43,749 euros - for the same cars. This calculation does not take into account VAT or any temporary price discounts. The comparison also shows that the average price of European brands in China is 43,004 euros, and in Germany - 58,844 euros. And the average price of Tesla cars in China is 26,861 euros, while consumers in Germany pay 33,168 euros for the American brand.

More competition in China

"The main reason is that there is very strong competition between manufacturers in China. In addition, nearly 10 million electric cars were produced in China last year and sold abroad," CAR Director Ferdinand Dudenhöfer told ARD. According to him, this significant volume also creates major price advantages. The expert points out that in addition, the serious competitive battle between Chinese manufacturers forces them to compete with each other for favorable prices.

For these reasons, electric cars in China are quite affordable. The analyzed 13 models from Chinese manufacturers are offered in their home country for about 15,000 euros - a price that would be unthinkable in Germany, where they cost about 32,500 euros. In other words, Chinese electric vehicles are more than twice as expensive in Germany (118%) as in their home country.

"The Chinese manufacturer BYD is now also selling its cars in Europe, but since it is a largely unknown brand, sales are growing slowly and are associated with high sales costs," explains Dudenhöfer.

In the medium term, prices will also fall in Europe

Therefore, car buyers will only be able to benefit from the low prices of Chinese cars in the medium term, the expert believes. Competitive pressure on prices will spread worldwide in the future, but this will take some time. Another factor that artificially increases the cost of electric vehicles in Europe are EU tariffs. But according to Dudenhöfer, the trend for the future is clear. "The prices of electric cars will continue to fall in the coming years," he says.

In 2025, Germany saw a slight increase in newly registered cars, with electric cars and hybrid cars becoming increasingly popular, notes the ARD. The overall growth for 2025 was 1.4% compared to 2024. Purchases increased particularly sharply in December 2025, when a plus of nearly 10% was recorded compared to the same month of the previous year.

For electric cars and hybrid cars, the growth for 2025 was even 43.2% compared to 2024. And cars powered by pure electricity recorded a growth of 19.1%, i.e. almost every fifth new car in Germany was purely electric, with BYD models accounting for only 0.8%.