💥 Powerful Savings: Electric Cars in Germany Are Cheaper Than Petrol Cars in 2025

By EV Update IndiaJun 18, 2025

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🚗 Electric Cars in Germany: Total Cost Victory Over Petrol Cars

Electric cars in Germany are no longer a luxury—they’re now the smarter financial choice. A recent study by the International Council on Clean Transportation (ICCT) reveals that the total cost of ownership (TCO) for battery electric vehicles (BEVs) in the compact class is lower than petrol-powered vehicles in Germany.

In short, electric cars save you money over time—especially when kept for four years or longer. With government subsidies, lower maintenance costs, and cheap electricity, they easily outperform traditional petrol cars on cost.

📉 ICCT Study Shows Cost Advantage of Electric Cars

The ICCT study compared compact and small car models to determine if electric cars offer better financial outcomes. Key findings:

In the compact segment, a VW ID.3 Pro (electric) beats the VW Golf VIII Style 2 (petrol).
- Over 4 years, the electric VW ID.3 costs €5,100 less.
- With purchase subsidies, savings jump to €12,300.

This confirms that electric cars in Germany are not just greener—they’re also more cost-effective in the long run.

🔋 Focus Keyword Highlight: Electric Cars – Small Car Segment

In the small car category, electric cars still offer savings—but they depend on subsidies.

Dacia Spring Electric (electric) vs Toyota Aygo X (petrol):
- Initially €6,000 more expensive.
- With subsidies, the electric Dacia costs €26,900, saving around €1,100 over four years.

This proves that purchase premiums are essential for making electric cars in Germany affordable for the average citizen.

💰 Why Electric Cars Need Subsidy Support

The German government plans to phase out subsidies by end-2025. This may significantly reduce the appeal of electric cars in Germany, especially for small car buyers.

According to Kyle Morrison, co-author of the ICCT study:

“Should this subsidy expire, a large part of the population will be left without an affordable electromobility option.”

This statement highlights the risk of removing government support too early in the EV adoption cycle.

🧾 Income-Based Subsidy Proposal for Electric Cars in Germany

To support low-income buyers, ICCT proposes a redesigned subsidy:

Income limit: €5,000/month (net)
Increased subsidy: €14,400 (up from €7,200)
Goal: Make electric cars in Germany accessible for everyone

This would ensure fair access to clean transportation and accelerate adoption across income groups.

⚡ Operating Costs Favor Electric Cars in Germany

Electric cars in Germany offer long-term cost benefits due to:

Lower fuel (electricity) costs
Reduced maintenance expenses
Tax incentives and exemptions
Increasing resale value as demand grows

When compared to the rising cost of petrol, electric cars in Germany have a clear operating advantage.

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🌱 Environmental & Economic Win: Electric Cars in Germany

In the first half of 2023, electric cars in Germany made up 14% of new vehicle registrations. With each car lasting 13+ years, the environmental and economic benefits of switching to BEVs now are undeniable.

The future of transport is electric, and electric cars in Germany are proving they’re not just eco-friendly—they’re financially smart.

✅ Final Verdict: Electric Cars in Germany Are the Smart Choice

With lower total ownership costs, government incentives, and a greener footprint, electric cars in Germany have officially become the better investment—especially in the compact segment.

To accelerate adoption, especially among lower-income groups, policy makers must extend or redesign subsidies that keep electric cars in Germany competitive and widely accessible.