According to Finland’s Fashion and Sports Commerce Association, the country’s bike sector has seen a sharp decline in sales, after the government announced the end of a scheme that allowed employees to purchase bikes through their employer with a tax exemption of up to €1,200 annually.
The Association states that, in spring of 2025, e-bike sales have fallen by around 70% and traditional bike sales by 25% year-on-year, and total bicycle sales are down by as much as 40%. Although the tax incentive scheme is not due to end until 2026, the decision has already caused a ripple effect in Finland’s bike industry.
Since the introduction of the tax exemption scheme in 2021, over 100,000 employees are estimated to have enjoyed its benefits. E-bikes constitute a substantial portion of the bike sales linked to the scheme, with sharp sales drops noted by Juho Kahra, CEO of Electric Bicycle Center, and Jani Lundberg, CEO of Velosport, following the government’s announcement of the scheme’s end.
A lack of clarity about the decision and its implementation has also been noted. Jukka-Pekka Hellman, tax expert at the Confederation of Finnish Enterprises, stated, “The decision to remove the tax exemption without a transition period will come as a big surprise not only to the users of the benefit, but also to the employer companies offering the benefit and to the bicycle shops.”
Industry groups are lobbying for Finland’s government to reconsider the decision, or launch alternative initiatives which would support cycling and green mobility.
The LEVA-EU member has announced that Ivan Jacobsen has joined its company to complement the existing sales team, and provide service to customers and dealers across Denmark.
Jabcobsen, a highly reputable and recognisable figure in the Danish bicycle industry, joins the e-bike brand from his Sales Consultant role at HF Christiansen, a company where he had been working since 2014.
Jacobsen has been involved in the Danish e-bike market since its early days, beginning in 2005 with his work at Seniorland selling electric bikes. Although sales were slow initially, the market steadily grew, and now accounts for a significant share of total bicycle sales in Denmark, with Jacobsen’s sales efforts making a notable contribution through the years.
Promovec is delighted to welcome Ivan Jacobsen as a valuable asset for its team with his strong network and extensive experience.
Austria’s Arge Fahrrad bicycle association has published its 2024 sales figure for the Austrian market, reporting the region as having the largest share of e-bikes in Europe.
After the number of e-bikes sold surpassed non-electric bikes for the first time in 2023, sales figures have since increased by 5% for 2024, accounting for 57% of the overall Austrian bike market, equating to the highest share in Europe. Meanwhile, in Germany e-bikes took up 53% of its market in 2024.
Austrian bicycle market in recent years
As the German bicycle market experienced a decline in 2024, its neighbouring country Austria also had a slight decline in bicycles sold compared to the previous year (-6.1%). However, the Austrian market has had an overly positive year like previous years, with 2024 sales generating €1.055 billion, the fourth time in a row that Austria’s market has exceeded one billion Euros.
The role of subsidies in Austrian bicycle sales
Although many countries have experienced challenging economic conditions since the pandemic, following Austria’s introduction of subsidies it has experienced a continued uptick in e-folding and e-cargo bike sales, with a sixfold increase in the number of company bicycles since 2022.
Until 2024, Austria’s e-mobility initiative, a joint cooperation of the Federal Ministry for Climate Protection with the sports and bicycle trade, offered up to €900 in subsidies towards the purchase of a new e-cargo bike and up to €500 for an e-folding bike, resulting in 13,300 electric bicycles being subsidized. From these positive increases, the Arge Fahrrad (Bicycle Working Group) is hoping for an extension in subsidies.
Bicycle industry stakeholders campaign for an extension in e-bike subsidies
Hans-Jürgen Schoder, spokesperson for the Arge Fahrrad, commented on the status of the overall bicycle market, with recommendations on how to strengthen it. “We predicted the decline due to the challenging economic conditions, which naturally have a negative impact on consumers’ purchasing power. But it is significantly smaller than expected; especially with e-bikes, we have some strongly growing segments, which makes us very confident. This makes it all the more necessary to create a political framework that will strengthen domestic purchasing power and get the economy going”.
Michael Nendwich, spokesperson for the sporting goods trade at the Austrian Federal Economic Chamber and managing director of the VSSÖ has commented on the need for subsidies to continue: “On the one hand, there is strong demand and added value in the domestic sports and bicycle trade. On the other hand, there has been a strong increase in sustainable electromobility for commuters, transport, and many other journeys using e-bikes for years. This is a tandem that must absolutely continue on the road to success. Reviving the successful subsidy models for (e-)folding bikes and (e-)cargo bikes, which expired last year, is imperative. These are a game changer for sustainable mobility – even in an economically difficult year with cautious consumers. The repair bonus also contributes to the bicycle trend,”
Anticipated Austrian bicycle market status for 2025
Schoder from Arge Fahrrad maintains an optimistic outlook for the current season for the industry and retail as other bicycle markets are also increasing their market share. “The bicycle is not only an important and reliable economic factor in Austria, but also a consistent trendsetter. E-mountain bikes have been stable for years and are even still slightly increasing at a high level. The fact that we are still able to gain market share and new fans for gravel bikes (+12.7 percent) and road bikes (+20.8 percent), even in economically difficult times, makes us confident for the future. The initial feedback from our retailers regarding Easter business is also cautiously optimistic. Industry and retail have done their homework, are always in close contact with our consumers, and we hope for another strong year for cycling in 2025,” Schoder concludes.