From Electromobility to Hydrogen: Why BMW is Shifting into the Future at its Austrian Site in Steyr

13. January 20264 minutes reading time

Quick Info

Who is the BMW Group – and what does it do in Steyr?

With more than 30 production sites, a global sales network and 159,000 employees, the BMW Group is one of the world’s leading manufacturers of cars and motorcycles.

The Steyr plant – the Group’s largest engine plant – hosts BMW’s Group-wide centre of expertise for diesel engines. Electric powertrains are also developed and produced here.

~ 4,900 employees at the Steyr plant
1.2 million engines produced in 2024
€8.8 billion invested since 1979

Why does Austria stand out as a location?

Austria is a compelling investment location thanks to its engineering expertise, political stability and attractive research funding. High productivity, a highly skilled workforce and an innovation-friendly environment create ideal conditions for sustainable growth – supported by excellent apprenticeship training and higher technical college education.

What is being created at BMW in Austria?

For more than 40 years, diesel and petrol engines – and, since 2025, electric motors as well – have been produced at the BMW Group plant in Steyr. From 2028, the fuel-cell system will follow, marking another major technological leap. With investments in future powertrains and in training, Steyr remains a flagship operation and an innovation engine for Upper Austria.

What role does the Austrian Business Agency (ABA) play?

The Austrian Business Agency is a partner for the BMW Group in Austria. With commitment, expertise and relevant data, it supports investment projects from idea to implementation – thereby strengthening Austria’s position as an innovation location in a sustainable way.

„Austria offers us ideal conditions, with engineering expertise, stability and excellent skilled workers. Steyr remains the heart of our powertrain expertise: by investing in the series production of fully electric powertrains and entering hydrogen technology, we are turning the site into a central innovation engine for the mobility of tomorrow.“

What makes Austria so attractive for technology groups like BMW?

Austria’s research and innovation landscape offers a unique combination of public support and industrial strength. The 14 % research premium, access to European funding, and support from the Province of Upper Austria and other funding bodies create optimal framework conditions for technology leaders. Steyr is the only BMW Group site outside Germany where research and production are combined – a clear commitment to the strength of Austria as a business location.

How is BMW leveraging Upper Austria’s potential for research and growth?

The Steyr site not only builds diesel and petrol engines and their core components, but since 2025 electric motors as well. For series production of these, BMW will invest around € 1 billion by 2030. From 2028, the fuel-cell system will also be developed and produced close to series production: another milestone that strengthens the site in the long term. In this way, Steyr combines decades of know-how with the development of the powertrains of tomorrow.

In Steyr, the BMW Group benefits from close cooperation between industry, science and policymakers. The site invests strategically in apprenticeship training, continuing professional development and talent programmes – and is therefore also among the country’s most popular employers.

Good to know!

50 %

Almost one in every two BMW/MINI vehicles worldwide is powered by a powertrain manufactured in Steyr.

4900 Employees

at the Steyr plant – the powertrain centre of expertise.

How does the ABA support international companies like BMW?

From site selection through to expansion, the Austrian Business Agency supports international companies personally, free of charge and comprehensively – advising on funding opportunities, skilled labour, dealings with authorities and industry networks. In the case of the BMW Group, the ABA acts as the central coordination point, providing facts, regional contacts and background knowledge to support internal decision-making processes and safeguard investments.

The result: The BMW Group continues to invest heavily in its Austrian site – demonstrating how research, production and innovation can work together successfully in Europe.