The industry predominantly manufactures passenger cars and motorcycles alongside a smaller number of trucks and agricultural vehicles. While foreign car makers, primarily German brands, dominate car manufacturing in Austria, the manufacturer KTM is headquartered and produces motorcycles in the country.
When it comes to car makes, Austrians also prefer to buy from their neighbors. VW was the most popular car brand in Austria in 2021, followed by Czech automaker Skoda. Meanwhile, the most popular model was the Fiat 500, which overtook VW and Skoda models in 2021.
Rising consumer interest and regulatory changes are contributing to a stronger focus on EVs among car manufacturers. Nearly a third of Austrian drivers are already considering an electric vehicle for their next purchase. From 2035 onwards, all new passenger cars in the EU are pledged to be zero-emission vehicles, setting the trajectory toward a consumer and production shift toward electric vehicles. Of the available and developing alternative propulsion systems and fuels, battery electric vehicles are gaining the most traction and are projected to dominate future new car sales in Austria.
Close industry ties to neighbors
German car brands not only dominate car manufacturing in Austria but also dominate sales and trade. Austrian automobile trade and production are closely linked to its northern neighbor: More than half of vehicle imports and exports, including parts for manufacturing, come from or go to Germany, while other trade partners trail far behind.When it comes to car makes, Austrians also prefer to buy from their neighbors. VW was the most popular car brand in Austria in 2021, followed by Czech automaker Skoda. Meanwhile, the most popular model was the Fiat 500, which overtook VW and Skoda models in 2021.
Electric vehicle sales are on the rise
A key trend in consumer behavior among Austrians is the increasing popularity of electric vehicles. 2020 and 2021 saw particularly steep increases in the number of new battery electric cars, with new registrations roughly doubling each year. Heightened environmental awareness coupled with more competitive EV prices, improved battery technology, and more accessible charging infrastructure will continue to exponentially increase the popularity of battery electric vehicles .Rising consumer interest and regulatory changes are contributing to a stronger focus on EVs among car manufacturers. Nearly a third of Austrian drivers are already considering an electric vehicle for their next purchase. From 2035 onwards, all new passenger cars in the EU are pledged to be zero-emission vehicles, setting the trajectory toward a consumer and production shift toward electric vehicles. Of the available and developing alternative propulsion systems and fuels, battery electric vehicles are gaining the most traction and are projected to dominate future new car sales in Austria.
