EVs Actually Got 18% Cheaper, So Why Did The Median Price Go Up?

A German study analyzing over 100,000 passenger car configurations between 2020 and 2025 found that battery electric vehicle prices fell by about 18 percent in real terms, while internal combustion vehicles became roughly 2 percent more expensive. The study attributes the price drop to falling battery costs, which decreased by roughly 35 percent in real terms since 2020. However, instead of cutting sticker prices further, manufacturers used some of the savings to increase driving range, improve vehicle specifications, or offset research and development costs. The median advertised price across the entire German market actually went up, growing from around €38,000 ($44,000) in 2020 to €54,000 ($62,000) in 2025, due to the explosion of available EV models, particularly larger, more expensive vehicles. The study highlights that falling battery costs don’t automatically translate into lower sticker prices, but rather into longer range, more equipment, or more expensive vehicles.