China First to Close the EV Price Gap – Statista

Report on Global Electric Vehicle Price Parity and Sustainable Development Goal Alignment

Executive Summary

This report analyzes the comparative market prices of Battery Electric Vehicles (BEVs) and Internal Combustion Engine (ICE) vehicles in key automotive markets: China, Germany, and the United States. The findings highlight a significant divergence in affordability, with China achieving price parity for BEVs. This price structure is a critical enabler for accelerating the adoption of sustainable transport, directly impacting the progress of several United Nations Sustainable Development Goals (SDGs).

Global Market Dynamics and Price Comparison

Analysis based on Q1 2025 and 2024 data reveals distinct regional trends in the transition to electric mobility, with affordability being the primary driver of adoption rates.

1. China: Leads global BEV adoption, accounting for 57% of registrations. It is the first major market where BEVs are, on average, more affordable than their ICE counterparts.
   • Average BEV Price: €21,900
   • Average ICE Price: €22,500
2. Germany: A significant price barrier persists, hindering mass adoption. BEVs are, on average, 34% more expensive than ICE vehicles, with prices for both vehicle types increasing since 2019.
3. United States: BEVs remain considerably more expensive than ICE vehicles. While the price gap has narrowed by 13 percentage points, a substantial disparity continues to challenge widespread adoption.

Implications for Sustainable Development Goals (SDGs)

The affordability of BEVs is intrinsically linked to the successful implementation of multiple SDGs. China’s market strategy provides a model for how price parity can accelerate progress.

• SDG 7 (Affordable and Clean Energy) & SDG 12 (Responsible Consumption and Production): China’s success in making clean transport technology financially accessible to the average consumer directly supports the transition to sustainable energy systems and promotes responsible consumption patterns. In contrast, the high cost of BEVs in Germany and the US acts as a significant barrier to achieving these goals in the transport sector.
• SDG 11 (Sustainable Cities and Communities) & SDG 3 (Good Health and Well-being): By facilitating a rapid shift to BEVs, China is actively reducing urban air and noise pollution. This contributes to creating healthier, more sustainable cities and improves public health outcomes. The slower adoption rates in other markets delay these critical benefits for their urban populations.
• SDG 13 (Climate Action): The transport sector is a major contributor to greenhouse gas emissions. China’s leadership in BEV adoption represents a substantial contribution to global climate change mitigation efforts. The persistent price gap in Western markets impedes their ability to meet climate targets related to transport decarbonization.
• SDG 9 (Industry, Innovation, and Infrastructure): China’s achievement demonstrates a successful industrial strategy that aligns innovation with sustainability and affordability. This sets a global benchmark for developing the necessary infrastructure and industrial capacity to support the clean energy transition in transport.

Conclusion

The achievement of price parity between BEVs and ICE vehicles is a pivotal factor in the global transition to sustainable transportation. The case of China demonstrates that making electric vehicles affordable is the most effective strategy for increasing adoption rates. This, in turn, serves as a powerful catalyst for advancing key Sustainable Development Goals, including those related to climate action, sustainable cities, clean energy, and responsible consumption. For nations like Germany and the United States, closing the price gap remains the primary challenge and a critical step toward meeting their own sustainability commitments.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 7: Affordable and Clean Energy

• The article’s central theme is the affordability and adoption of battery electric vehicles (BEVs), which represent a shift towards cleaner energy in the transport sector. China’s success in making BEVs cheaper than combustion engine cars directly supports the goal of increasing access to affordable and clean energy technologies.

SDG 9: Industry, Innovation and Infrastructure

• The text discusses a major shift in the automotive industry towards sustainable technology (EVs). It highlights China’s industrial strategy and innovation, which has enabled the mass production of affordable EVs, thereby retrofitting a key industry to be more sustainable and environmentally sound.

SDG 11: Sustainable Cities and Communities

• Electric vehicles are a key component of sustainable transport systems, which are crucial for developing sustainable cities. By achieving price parity and making EVs more affordable, as highlighted in the article for China, access to sustainable transport is increased for a larger portion of the population.

SDG 13: Climate Action

• The transition from combustion engine cars to BEVs is a critical strategy for mitigating climate change by reducing greenhouse gas emissions from the transport sector. The article, by focusing on the drivers of EV adoption (affordability), implicitly addresses measures being taken to combat climate change.

2. What specific targets under those SDGs can be identified based on the article’s content?

Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable

• The article describes the automotive industry’s transition towards clean technology. China’s leadership in BEV sales and production, making them more affordable than traditional cars, is a direct example of retrofitting an industry for greater adoption of clean and environmentally sound technologies.

Target 11.2: Provide access to safe, affordable, accessible and sustainable transport systems for all

• The core of the article is the comparison of EV and combustion engine car prices. It explicitly states that in China, “electric vehicles… are often more affordable than cars with combustion engines.” This directly relates to the target of providing affordable and sustainable transport options. The contrast with Germany and the US, where EVs are more expensive, further emphasizes the importance of affordability in achieving this target.

Target 13.2: Integrate climate change measures into national policies, strategies and planning

• China’s success in the EV market, as described in the article, is the result of deliberate national strategies and policies aimed at promoting new energy vehicles. This represents a clear integration of climate change mitigation measures (promoting low-emission transport) into national industrial and economic planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicator for Market Adoption of Sustainable Technology

• Percentage of global BEV registrations: The article states that China “accounted for 57 percent of global BEV registrations in the first quarter of 2025.” This is a direct quantitative indicator of the adoption rate of sustainable transport technology.

Indicator for Affordability of Sustainable Transport

• Average list price of BEVs vs. combustion engine cars: The article provides specific price data that serves as a direct indicator of affordability. For example, in China, the average price for a BEV is €21,900, while a combustion engine car costs €22,500. This data measures progress towards making sustainable options economically accessible.

Indicator for Price Disparity

• Price gap percentage: The article mentions that in Germany, an electric car’s price is “on average 34 percent higher” and that in the US, the price gap “has narrowed by 13 percentage points.” This percentage gap is a specific indicator used to track the economic feasibility and competitiveness of sustainable transport compared to traditional options.

4. Table of SDGs, Targets, and Indicators

Source: statista.com