The impact of stricter regulations for speeders in Austria on the German automotive market
But what does the new regulation actually look like?
From 01.03.2024, the consequences for extreme speeders will come into force. Anyone who exceeds the speed limit is now even risking permanent loss of their vehicle. The limits differ depending on whether you are in urban or out-of-town.
If drivers exceed the limit of 60 km/h in urban areas or the 70 km/h limit in extra-urban areas, the vehicle is immediately confiscated. If you even exceed 80 km/h in urban areas or 90 km/h in extra-urban areas, the loss of the car is even permanent.
The confiscated vehicles are auctioned off in Austria. And that is exactly what could have an impact on the German market.
First of all, stricter penalties for speeders in Austria could lead to a change in the behavior of German consumers. Consumers could tend to be more careful when choosing their vehicles and pay more attention to safety aspects. This could lead to increased demand for vehicles with advanced safety technologies, which offers car dealers and OEMs the opportunity to market and sell appropriate models.
Example: Car dealers who specialize in selling sports cars and high-performance vehicles could potentially experience a slight decline in sales figures. How will demand and supply develop in this segment?
In addition, the seizure and auction of vehicles in the event of speeding offences in Austria could influence the German used car market. An increase in the supply of used cars from Austria could lead to attractive shopping opportunities for German car dealers, who could buy these vehicles at competitive prices and resell them in Germany. This could intensify competition on the German used car market and potentially lead to a price war.
In addition, the stricter penalties in Austria could also have an impact on the export of vehicles. German car dealers could buy more used cars from Austria and export them to other countries in order to benefit from the markets there. This could lead to an increase in export business and position the German automotive market more strongly internationally.
However, car dealers and OEMs must also consider potential challenges that could come with the new regulations. Increased consumer awareness of safety issues could result in lower demand for certain types of vehicles considered to be less safe. This could prompt car dealers to adapt their product range and focus more on vehicles with improved safety features.
In summary, the stricter regulations for speeders in Austria could have potentially far-reaching effects on the German automotive market. Car dealers and OEMs should closely monitor these developments and adapt their strategies accordingly in order to benefit from changing market conditions and successfully overcome potential challenges.
