Austria’s electric vehicle market continues to grow despite the end of purchase subsidies that once boosted sales.
The federal government stopped EV subsidies in February 2025 after using up its budget, as noted by the European Alternative Fuels Observatory. From April 1 of that year, battery-electric vehicles also lost their exemption from motor-related insurance tax.
Charging expansion slows while sales rise
Public charging infrastructure growth has slowed. In May 2025, Austria had 20,723 public EV charging locations, a 24% increase from the previous year. By May 2026, that growth had fallen to 14.3%.
EV sales, including battery-electric and plug-in hybrid models, climbed 27.3% in the first four months of 2026, surpassing the overall new-car market’s 15.3% gain. Plug-in hybrids saw the largest increase at 37.6%, while all-electric models rose 23%.
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April showed a similar trend. Battery-electric vehicles increased 24.8% year-on-year, ahead of plug-in hybrids’ 17.7% gain. Combined, EV sales grew 22.6% that month, nearly double the broader market’s 10.7% rise.
Other financial incentives now support demand. Battery-electric vehicles remain exempt from registration tax, and companies benefit from zero ownership and pollution taxes for zero-emission models. Businesses can also fully deduct VAT on BEVs priced up to €40,000, with partial deductions for vehicles costing between €40,000 and €80,000.
These benefits primarily help fleet buyers, who make up a significant portion of new EV registrations. The numbers indicate buyers are adjusting to the changes.
Funding shifts to charging networks
The government is now focusing on expanding charging infrastructure. The eMove Austria program, managed by the Federal Ministry of Innovation, Mobility and Infrastructure, has allocated €220 million to e-mobility in 2026. An additional €30 million will fund fast-charging stations in rural areas this year.
The aim is to improve accessibility, particularly outside cities. Success could reduce range anxiety, a major concern for potential EV buyers.
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The Tesla Model Y was the best-selling EV in Austria during the first four months of 2026, with 2,047 units sold—more than double the leading plug-in hybrid. The crossover represented 5.7% of all new EV sales, while the Tesla Model 3, in ninth place, accounted for 1.5%.
The Skoda Elroq sold 1,493 units, making it the second-best-selling BEV in Austria between January and April.
The BYD Atto 3 saw the most dramatic growth in April’s top 10, increasing 1,105% year-on-year with 241 sales. Its counterpart, the Sealion 7, ranked seventh overall with 775 units.
The market’s strength suggests subsidies were helpful but not the only driver. Lower prices, more options, and better infrastructure may be enough to maintain buyer interest, even if challenges remain.