Discounts on electric vehicles (EVs) in Germany rose in April, with the average markdown reaching 16.7%, up 1.8 percentage points from March, according to leading expert Ferdinand Dudenhöffer.
Since January, EV discounts have increased by three percentage points, amounting to savings of well over €1,000 on typical models, Dudenhöffer said. He analyzed online prices for the 20 most popular fully electric cars in Germany.
“In April, the threshold for offering higher discounts on electric vehicles has fallen,” Dudenhöffer said, predicting that price cuts would continue in the coming months.
Carmakers are under pressure to sell more EVs to meet European Union CO2 targets and some brands have recently changed their distribution systems, leading to renewed use of dealer incentives and promotional campaigns to stimulate weak demand.
Discounts for internal combustion engine vehicles and plug-in hybrids fell slightly in April and have risen far less than EV incentives since January, Dudenhöffer said.
As a result, the price gap between EVs and conventional cars has narrowed, falling to its lowest level since Germany ended state-funded EV subsidies.
Dudenhöffer said Germany’s electric vehicle sector may now be on the brink of a “new upswing driven by more attractive pricing.”
New registrations of EVs in Germany rebounded in the first quarter after plunging in early 2024, following the expiration of government subsidies.