emirates7 - Automakers reduced their in-house discounts for electric vehicles on the German market in May.
According to the monthly new car market report from the private Centre Automotive Research (CAR), this is a direct consequence of government subsidies being paid retroactively since May for registrations made during the current year.
"It appears that automakers are testing the market," said the study director Ferdinand Dudenhoeffer. Contrary to the previous trend, the gap in transaction prices between EVs and internal combustion engine (ICE) vehicles is widening again.
According to market surveys of the 20 best-selling electric vehicles, the average discount has fallen from 19.5 percent in January to 18.6 percent. As a result, electric cars were on average €1,971 more expensive to purchase than a comparable ICE model. This figure does not include government subsidies.
CAR observed declining discounts, particularly for smaller EVs, which are more likely to fit the requirements of households eligible for subsidies. The purchase and leasing of new electric cars, certain plug-in hybrids capable of running on both electricity and fuel, and electric cars with so-called range extenders are eligible for funding. The latter are small internal combustion engines used to increase the range of electric vehicles.
Eligibility requires the vehicle to have been registered since 1st January 2026. The amount of the government grant depends on the vehicle, household income (maximum €80,000), and family size, ranging between €1,500 and €6,000.
The premium applies only to private cars, not to company vehicles. The funding is intended to cover up to 800,000 vehicles.
According to the monthly new car market report from the private Centre Automotive Research (CAR), this is a direct consequence of government subsidies being paid retroactively since May for registrations made during the current year.
"It appears that automakers are testing the market," said the study director Ferdinand Dudenhoeffer. Contrary to the previous trend, the gap in transaction prices between EVs and internal combustion engine (ICE) vehicles is widening again.
According to market surveys of the 20 best-selling electric vehicles, the average discount has fallen from 19.5 percent in January to 18.6 percent. As a result, electric cars were on average €1,971 more expensive to purchase than a comparable ICE model. This figure does not include government subsidies.
CAR observed declining discounts, particularly for smaller EVs, which are more likely to fit the requirements of households eligible for subsidies. The purchase and leasing of new electric cars, certain plug-in hybrids capable of running on both electricity and fuel, and electric cars with so-called range extenders are eligible for funding. The latter are small internal combustion engines used to increase the range of electric vehicles.
Eligibility requires the vehicle to have been registered since 1st January 2026. The amount of the government grant depends on the vehicle, household income (maximum €80,000), and family size, ranging between €1,500 and €6,000.
The premium applies only to private cars, not to company vehicles. The funding is intended to cover up to 800,000 vehicles.
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