3,000 jobs fewer: Auto suppliers are bracing themselves against the crisis

“There is a minus everywhere. The industry is under pressure,” explained IWI director Herwig Schneider. The decline is weaker than in the previous year, when sales fell by 9.2 percent. But recovery is a long time coming. Adjusted for inflation, it becomes clear that there was no real growth momentum from 2019 to 2022.

Export quota at 94 percent

The Austrian automotive supply industry is extremely export-oriented. 94 percent of sales are generated abroad. The most important sales markets are EU countries such as Germany, Italy and France (48 percent), followed by North America (22.2 percent) and Asia (13.7 percent).

But it is precisely there that the economy is weakening. “We don’t have much growth momentum in Europe,” says Schneider. In addition, many exports go indirectly via Germany to America or Asia. The actual dependence on global markets is therefore even greater than the statistics show.

Well positioned

A positive finding: 58 percent of companies supply vehicle manufacturers directly – a sign of high-quality products. The focus is on drives, electronics as well as machines and systems. The industry is already preparing for the future: IT-related activities, Internet of Things, sensors and innovative materials are mentioned as new business areas.

“The industry recognizes this transformation process very well and is already adapting its technologies,” said Schneider. “It’s not a process that happens overnight, but it’s there.”

Criticism of the transformation to e-mobility

Schäfer clearly criticized the transformation to electromobility. Almost 70 percent of the companies surveyed would experience the changeover as “less dynamic than expected and more changeable than planned”. “Many companies have invested. And sales and the return on these investments are sluggish,” said Schäfer.

More than 80 percent of companies expected a mix of different drive types in the medium term. With the ban on combustion engines from 2035, Europe is “alone in the world”. “The Chinese didn’t do that, the Americans didn’t do that at all.”

Schäfer is particularly critical of the funding policy. As an example, he cited the input tax deductibility for electric vehicles used for business purposes with a threshold of 40,000 euros. “What we are doing here is that we are promoting electromobility, yes, but we are not promoting our economy or our added value in Europe, but we are indirectly promoting the added value in China.”

Cautious optimism

Despite the difficult situation, companies are not completely pessimistic. 46 percent expect their export activities to increase in the next three years. 39 percent expect at least some stabilization.

“The expectations are not that negative,” said Schneider. Companies hoped that their technological investments could be translated into market success. However, the prerequisite is that the location conditions in Austria do not deteriorate further.

Significance for Austria remains enormous

Despite all the problems, the automotive supply industry remains a central economic factor. Overall, the industry generates economic power of 45.6 billion euros. The 73,900 direct jobs result in 183,000 jobs throughout the economy.

Taxes and duties alone bring 4.8 billion euros into the state treasury. “This is an incredible effect for the Austrian economy in times of economic crisis,” said Schneider. “This is a guarantee of prosperity in this country that needs to be taken care of.”

demands on politics

Schäfer formulated clear expectations: “Companies are adapting. But they need framework conditions under which investments also pay off economically.” Specifically, he called for a reduction in bureaucracy, competitive energy, labor and tax costs and openness to technology.

The IWI does not dare to make a concrete forecast for 2026. The uncertainties caused by the geopolitical situation, customs regulations and interest rate developments are too great. “The minus will most likely also occur this year,” said Schneider.