New trend: Car buyers pay more for a car with less range

It almost sounds backwards. Many buyers look at range and fuel economy, and the most electric option usually costs the most.

In Germany, however, it’s the other way around, with plug-in hybrids costing considerably more on average than both electric cars and pure petrol and diesel models.

A review of German prices shows that a typical plug-in hybrid costs approximately 49,000 USD.

Electric cars are priced at around 37,000 USD, while cars with combustion engines cost an average of 35,000 USD.

The difference is palpable, even though the plug-in hybrid often has a shorter electric range than a pure electric car while operating on two powertrains.

Electric cars are being pushed down in price

This trend is closely linked to the pressure on car manufacturers. They need to sell more electric cars to meet the EU’s CO2 requirements, and the target is 100% emission reduction for new cars from 2035.

The figures are based on an analysis by Centre Automotive Research, which shows that plug-in hybrids cost an average of 14,000 USD more than combustion cars and 12,000 USD more than electric cars.

At the same time, the price gap between electric cars and combustion cars has become much smaller. In November, the average price of an electric car in Germany was just 1,800 USD higher than a car with an internal combustion engine. The year before, the difference was around 7,500 USD.