Europe's EV prices near parity as discounts reshape market
EVs in Europe close the price gap with petrol and diesel
Europe's EV prices near parity as discounts reshape market
EV prices in Europe are converging with combustion cars as discounts surge. Tesla, BMW and BYD lead the shift; price parity could arrive within two years.
2025-11-11T05:47:19+03:00
2025-11-11T05:47:19+03:00
2025-11-11T05:47:19+03:00
Electric cars in Europe are rapidly shaking off their image as pricey toys. Economist Ferdinand Dudenhöffer reports that the price gap between EVs and combustion models has narrowed to a historic low of just €1,600. For context, in 2024 it exceeded €7,500.The main driver is a wave of record-breaking markdowns. The average discount on EVs climbed from 12.9% to 19% in a year, while many brands—BMW, Kia, Opel and China’s BYD among them—cut sticker prices by tens of thousands of euros to fire up demand. Carmakers are also leaning on other levers: selling demonstrators, pushing so‑called zero‑kilometer cars, and rolling out more affordable trims. It reads less like a short-term promotion and more like a systematic reset of pricing.Tesla, for instance, has launched a cheaper Model Y, and BMW has introduced a new compact Mini Electric. The revival of the small A and B segments is accelerating price convergence as well. When truly compact EVs come back into focus, the technology starts feeling mainstream rather than a premium indulgence.Experts say the momentum is irreversible. Rising production and the localization of Chinese brands in Europe are expected to lower manufacturing and logistics costs. Dudenhöffer forecasts that within two years EVs will match the prices of comparable petrol and diesel cars, finally dispelling the notion of “expensive electricity.” If that happens, the market’s perception will have changed for good.
EV prices Europe, electric cars pricing, price parity, discounts on EVs, Tesla Model Y, BMW Mini Electric, BYD in Europe, Kia, Opel, small EVs, A and B segments, Chinese brands localization
2025
Michael Powers
news
EVs in Europe close the price gap with petrol and diesel
EV prices in Europe are converging with combustion cars as discounts surge. Tesla, BMW and BYD lead the shift; price parity could arrive within two years.
Michael Powers, Editor
Electric cars in Europe are rapidly shaking off their image as pricey toys. Economist Ferdinand Dudenhöffer reports that the price gap between EVs and combustion models has narrowed to a historic low of just €1,600. For context, in 2024 it exceeded €7,500.
The main driver is a wave of record-breaking markdowns. The average discount on EVs climbed from 12.9% to 19% in a year, while many brands—BMW, Kia, Opel and China’s BYD among them—cut sticker prices by tens of thousands of euros to fire up demand. Carmakers are also leaning on other levers: selling demonstrators, pushing so‑called zero‑kilometer cars, and rolling out more affordable trims. It reads less like a short-term promotion and more like a systematic reset of pricing.
Tesla, for instance, has launched a cheaper Model Y, and BMW has introduced a new compact Mini Electric. The revival of the small A and B segments is accelerating price convergence as well. When truly compact EVs come back into focus, the technology starts feeling mainstream rather than a premium indulgence.
Experts say the momentum is irreversible. Rising production and the localization of Chinese brands in Europe are expected to lower manufacturing and logistics costs. Dudenhöffer forecasts that within two years EVs will match the prices of comparable petrol and diesel cars, finally dispelling the notion of “expensive electricity.” If that happens, the market’s perception will have changed for good.
