Electric vehicles in Germany are shedding their reputation as slow-selling stock, and the discounts that once came with them are narrowing as a result. According to Spiegel, citing the regular market study from the private Center Automotive Research (CAR) in Bochum, manufacturers and dealers raised incentives slightly in October, but mainly on combustion-engine cars and plug-in hybrids. Battery-electric models, by contrast, were offered with smaller reductions off list price.
The shift shows up in the numbers. New combustion cars changed hands at an average of 19.6 percent below list price in October, while electric cars carried an average discount of 16.3 percent, according to the CAR figures reported by Spiegel. Buyers of electric models can additionally benefit from state purchase incentives of up to 6,000 euros where their individual economic circumstances qualify.
Why it matters
The gap between the two drivetrains has widened sharply within a year. CAR recorded an average price difference of more than 2,900 euros between electric cars and combustion models in October. In December 2025, when fuel prices were considerably lower, electric cars were only 1,328 euros more expensive than their petrol and diesel counterparts, Spiegel reports.
That reversal matters for anyone shopping for a new car in Germany. The electric segment is no longer the place to find the deepest cuts. Instead, the steepest reductions are concentrated among the volume combustion models that dealers are working harder to move.
Fuel prices reshape the showroom
Ferdinand Dudenhöffer, who leads the CAR study, offered a direct explanation for the narrowing electric discounts. High fuel prices, he said, give manufacturers room to charge somewhat more for electric cars, according to Spiegel.
The logic runs through the running costs. When petrol and diesel are expensive, an electric car's lower energy costs become a stronger selling point, which reduces the pressure on makers to sweeten the sticker price. The study's authors see that dynamic reflected in the October offers.
The models affected by the deeper combustion discounts include high-volume names such as the VW Golf, the Opel Astra and the Fiat 500, Spiegel reports. These are mainstream cars rather than niche products, which means the incentive changes touch a large share of the German new-car market.
Plug-in hybrids draw the biggest cuts
Plug-in hybrids sit at the far end of the discount scale. For the 20 best-selling plug-in hybrid models, CAR measured an average reduction of 20.3 percent off list price in October, according to Spiegel.
Chinese manufacturer BYD stands out in that group, offering close to 38 percent off list price on its Seal 6 model, Spiegel reports. That figure comes with a caveat: the EU and China have since agreed to limit imports of Chinese hybrid vehicles, a change that could alter the offers available going forward.
How the study is built
CAR compiles its findings by regularly tracking the offer prices for the 25 best-selling cars in each category, according to Spiegel. The institute is based in Bochum and its market study is published at regular intervals, making it one of the reference points for German new-car pricing.
The October edition captures a market in which the direction of incentives has flipped. Rather than electric cars being the heavily discounted option, the pressure has moved to combustion models and plug-in hybrids, while electric vehicles hold firmer on price.
For buyers, the practical effect is a calculation that now runs in two directions. A combustion car may come with a larger percentage off the list price, but it also carries higher fuel costs at current pump prices. An electric car offers a smaller discount but can qualify for state support of up to 6,000 euros and costs less to run. Which side of that equation wins depends on the individual buyer's circumstances and the model in question.
The wider signal is about demand. Spiegel's headline framing — that electric cars have overcome their image as unsold stock — points to a market where electric models are moving well enough that dealers feel less need to cut prices. The discounts on combustion cars and plug-in hybrids suggest the opposite pressure in those segments.
Watch whether the trend holds as fuel prices move. CAR's own comparison with December 2025 shows how quickly the electric-versus-combustion price gap can swing when energy costs change, and the EU-China arrangement on hybrid imports adds another variable to the plug-in segment in the months ahead.
