A cyclist on a sunny spring day in Aurinkolahti, Vuosaari, Helsinki on 5 May 2025. Photo: Vesa Moilanen / Lehtikuva
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Bicycle sales in Finland have sharply declined this spring after the government discontinued a tax incentive scheme that allowed employees to purchase bikes through their employer tax-free.
According to the Fashion and Sports Commerce Association, e-bike sales have fallen by about 70 percent and traditional bike sales by 25 percent compared to the same period last year. Overall, total bicycle sales are down by as much as 40 percent.
The scheme had allowed workers to acquire a bicycle with a tax exemption of up to €1,200 annually. More than 100,000 employees are estimated to have benefited from the arrangement before it was withdrawn.
“The sudden stop in demand will cause several bankruptcies and business closures. There are up to 400 jobs at risk within the bicycle industry alone,” said Matti Kankaanpää, CEO of the association, in a press statement.
In some stores, sales reportedly dropped by as much as 90 percent this spring.
Last year, over 30,000 new e-bikes were sold in Finland, with many purchases linked to the now-ended benefit. The loss of this support has coincided with the industry’s most important sales season.
The association, which represents Finnish sports and fashion retailers and wholesalers, has previously warned that the move would hit small and medium-sized businesses hardest, particularly those reliant on seasonal revenue from spring and early summer sales.
While demand had increased steadily in recent years due to rising interest in sustainable transport and employer-subsidised options, the removal of the benefit has reversed that trend.
Industry groups are calling for the government to reconsider its decision or introduce alternative forms of support for cycling and green mobility.
HT
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Source: www.helsinkitimes.fi
