Austria concluded 2024 with over 200,000 electric vehicles (EVs) and approximately 30,000 publicly accessible charging stations.
In this context, a local source consulted by Mobility Portal Europe asserts: “The EV market in the country is quite good because we have tax reductions, among other incentives.”
However, he adds: “Currently, discussions are underway regarding cuts to these types of aids, which presents a challenge.”
The nation is undergoing a period of political uncertainty, defined by negotiations for the formation of a new government, but the debate surrounding fiscal incentives for EVs is part of a broader discussion.
Austria faces a “budget deficit,” meaning the state has spent more than it has earned in recent years.
As a result, both the Freedom Party of Austria (FPÖ) and the Austrian People’s Party (ÖVP) are seeking to implement cost-saving measures.
They also aim to avoid an EU “deficit procedure,” which would require the country to meet specific public spending reduction targets.
Recently, potential austerity measures were discussed in Parliament, although there is still no consensus on how to address them.
“The government needs to save money and, of course, they are cutting funds, which will initially have a negative impact on the eMobility market,” says the industry expert.
Nevertheless, they believe that the future of mobility in Austria will remain electric and that, in the long term, the EV market will develop positively.
The reason? “Technology has improved and, furthermore, the arrival of new Chinese cars, significantly more affordable than current European EVs, will drive this transition,” they argue.
In this context, they analyse the management of the government led by Chancellor Karl Nehammer, whose term ended on 10 January this year.
“He effectively promoted the transition, offering benefits in comparison to gasoline vehicles, such as financing and tax reductions, among other aspects, which I positively appreciate,” he notes.
Specifically, the purchase of an EV by private individuals receives an incentive of 5,000 euros, 2,000 of which come from car importers and 3,000 from the federal government.
In addition to these bonuses, the administration reduces taxes on EVs for businesses to make them more attractive to employees.
This fiscal advantage has led to higher registration of commercial vehicles compared to private ones.
“It remains to be seen what will happen with the new administration. I hope they continue with these measures,” underscores the specialist.
Currently, the executive is in talks with various parties.
In this regard, the interviewee states: “I believe that within one or two months, at the latest, we will have a new government, unless new elections are called.”
Austria remains an attractive market for eMobility
Despite the uncertainty, the Austrian market has traditionally been one of the most advanced in terms of adopting electric mobility.
“People here are like early adopters, they have that spirit,” says the expert.
Compared to other European countries, it is among the most developed markets in terms of infrastructure and EV adoption.
The charging infrastructure network in Austria is well-developed, making it easier to use these vehicles and reducing one of the major entry barriers.
“Charging away from home is no longer a problem,” says the specialist.
And he elaborates: “This means Austria represents an attractive market for those interested in doing business in the electric mobility sector.”
In this context, the president of the Austrian Federal Association for Electromobility (BEÖ), Andreas Reinhardt, calls for a clear direction, as otherwise, “investments may be postponed.”
“eMobility is not only a key factor for the decarbonisation of our transport sector, but also an economic factor for Austrian companies,” he argues.
For example, BEÖ member companies are investing more than 75 million euros in expanding the public charging infrastructure between 2024 and 2025.
In this regard, he highlights eCars as an essential part of this equation, especially in achieving climate goals.
He also cites the success story of Norway, where the proportion of EVs is nearly 90%.
“This successful path has been possible thanks to sensible and stable long-term measures from the state,” Reinhardt asserts.
“Conversely, if tax exemptions are approved and then revoked, the short-term saving effect for the budget is small, but the long-term economic damage is much greater,” he emphasises.
Therefore, he urges the new government to continue promoting the expansion of electric mobility.
This includes maintaining the purchase bonus for private EVs, support programmes for the transition of commercial vehicles and bus fleets to zero-emission propulsion systems.
As well as continuing tax reductions for EVs.
“Reversing already approved measures would delay the necessary transition to more sustainable mobility and harm Austria’s position in global competition,” he warns.
