High fuel prices boost demand for electric vehicles

The persistent increase in fuel prices in Germany has significantly boosted the demand for electric vehicles (EVs), according to a market study by the Center Automotive Research (CAR) in Bochum. While this surge in demand reflects a shift in consumer preferences towards more cost-efficient and environmentally friendly options, it has also led to reduced discounts on EVs compared to traditional combustion engine and plug-in hybrid vehicles.

As per the report, manufacturers and dealerships have slightly increased discounts for combustion engine models and plug-in hybrids in October. Notable models such as the Volkswagen Golf, Opel Astra, and Fiat 500 have benefited from such promotions. In contrast, the reduction in discounts for EVs suggests that suppliers are capitalizing on the high fuel prices to sustain higher pricing. The study notes that the average discount on new combustion engine vehicle purchases stood at 19.6% below the list price, while for EVs, the discount was around 16.3%.

Ferdinand Dudenhöffer, the study leader, stated, "The high fuel price allows room for slightly elevated prices for electric vehicles." This indicates that while direct monetary incentives may be lower for EVs, they remain a financially viable option due to additional government subsidies. These subsidies can reach up to 6,000 euros, provided that individual economic conditions are met.

The CAR institute's regular collection of pricing data involves monitoring the offering prices of the 25 best-selling cars in each category. This comprehensive analysis has shown that the price gap between EVs and conventional vehicles has widened to over 2,900 euros as of October. Back in December 2025, when fuel prices were lower, the price difference was just 1,328 euros, illustrating the impact of fluctuating energy costs on vehicle market dynamics.

The market for plug-in hybrid vehicles has also seen changes, with an average price reduction of 20.3% in October for the top 20 best-selling models. Among these, the Chinese manufacturer BYD has emerged as a formidable competitor, offering discounts of almost 38% off the list price for its Seal 6 model. However, developments between the European Union and China could potentially affect this trend, as both have now agreed to limit the importation of Chinese hybrid vehicles to the EU.

Car dealerships are observing this trend, highlighting that while the market favors electric vehicles due to rising fuel costs, the economic environment is prompting a recalibration of discount strategies. Customers, meanwhile, are likely weighing the long-term savings on fuel against the initial purchase price, supported by government incentives aimed at encouraging a transition to more sustainable vehicle options.

Source: spiegel.de