Austrian Car Market in 2025 is still growing steadily. H1 sales surged 6.3%, while EVs gained 28.4%, led by BYD which outpaced Volkswagen and became sector leader. Notably, Cupra climbed 11 spots into 5th with impressive growth.
Economic Environment
Austria is projected to remain in recession in 2025, with GDP shrinking by 0.3%, marking the third consecutive year of economic contraction. Modest consumption recovery and a slow rebound in construction are expected, but weak investment, sluggish industry, and trade tensions will continue to weigh on growth. Inflation will remain elevated at 2.9%, driven by rising energy prices and services costs, before easing to 2.1% in 2026. The unemployment rate will peak at 5.3% before slightly improving next year.
Fiscal consolidation is underway, yet the government deficit will remain above 4% of GDP through 2026, and public debt will rise from 84% to 85.8% of GDP. Despite cuts to public consumption and climate bonuses, inflation-indexed spending on wages and pensions keeps fiscal pressure high. Trade tensions, especially with the US, limit export prospects, and industrial competitiveness remains challenged by high energy and labour costs. A mild recovery is forecast for 2026, led by stronger domestic demand, but structural weaknesses and fiscal constraints will persist.
Automotive Industry Trend and Outlook
Despite the negative economic outlook, Austria’s car market in 2025 seems to be following prior year’s trend as H1 sales totaled 143,660 units, up 6.3%.
EV Market Trend and Outlook
The EV market in Austria rebounded in 2025, reaching 16.9% of total car sales. After a sluggish 2024, H1 sales for 2025 surged 28.4%, driven by better charging infrastructure and a wider range of models.
BYD surged 112.7% to take the lead and climb 2 spots, while Volkswagen followed in 2nd, up 97.2%, climbing 2 spots. Meanwhile, Tesla and BMW slipped to 3rd and 4th, with sales dropping 23.5% and 6.5%, respectively.
Medium-Term Market Trend
Over the past decade, Austria’s car market has seen notable ups and downs. Starting at 303,232 units in 2014, it grew steadily to a peak of 353,596 in 2017, up 7.4% year-on-year.
The market then declined in 2018 (-3.4%) and 2019 (-3.5%) due to stricter EU emissions rules and shifting consumer preferences away from combustion engines. The COVID-19 pandemic in 2020 triggered a sharp 24.5% drop to 248,942 units as lockdowns and uncertainty stalled demand.
Declines continued through 2022, hitting a low of 215,049 units due to supply chain disruptions, particularly chip shortages. A rebound came in 2023, with sales up 11.2% to 239,016, followed by further recovery in 2024 to 253,795 units (+6.1%), driven by easing supply issues and rising eco-consciousness.
EV sales picked up in 2019 (+75.4%) and sustained double-digit growth, reaching a 14.4% market share in 2024, supported by incentives, new models, and improved infrastructure.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 models.
