Credit: Pixabay
On Thursday 15 January 2026, the Automobile Club of Luxembourg (ACL) reported its latest information on Luxembourg’s automotive sector.
Ahead of the 62nd edition of the Autofestival, which will take place from Saturday 24 January to Monday 2 February, the ACL said that despite ongoing economic uncertainty, Luxembourg’s automotive market showed signs of resilience in 2025, with new data from the Société Nationale de Circulation Automobile (SNCA) and industry stakeholders pointing to continued momentum in the transition towards electrified vehicles.
According to the SNCA, a total of 133,587 vehicles were registered across all categories in 2025, representing an increase of 3.4% compared to 2024. Focusing specifically on passenger cars, 47,161 new cars were registered last year, marking a 1.1% year-on-year increase. At the same time, the used car market experienced a stronger rebound, with 62,017 used cars registered in 2025, up 4.5% compared to the previous year.
“The market is recovering, but it has not yet returned to 2019 levels,” noted Manuel Ruggiu, Director of Operations at the SNCA, referring to the 55,008 new cars registered prior to the pandemic. He added that the used car segment, by contrast, has already shown a more pronounced recovery.
The ACL highlighted that long-term trends clearly illustrated a structural shift away from conventional powertrains (the complete system of components that generate power and deliver it to the wheels). Diesel vehicles, which accounted for 41.9% of new registrations in 2019, represented just 9.9% in 2025.
“Diesel is increasingly becoming a niche market,” remarked Manuel Ruggiu.
In comparison, the share of hybrid cars rose sharply from 4.1% in 2019 to 29.3% in 2025, while fully electric vehicles increased from 1.8% to 26.9% over the same period. Plug-in hybrids also gained ground, rising from 1.7% to 7.9%. Taken together, vehicles that can be recharged from an electrical outlet accounted for 34.7% of new car registrations in 2025 – just over one third of the market.
However, the ACL noted that the growth rate of fully electric vehicles appears to be levelling off. After reaching 27.4% of new registrations in 2024, their share dipped slightly to 26.9% in 2025. “There is a certain amount of stagnation,” Manuel Ruggiu explained. “Theoretically, following the curve, we should be exceeding 30%, but that is not the case.”
Fedamo President Philippe Mersch attributed this stabilisation to several factors, including the uncertain economic climate, unfavourable tax conditions and constraints linked to CO₂ emission calculations. He cited the example of hybrid company cars emitting 50 g of CO₂ being taxed in the same category as high-powered diesel SUVs, arguing that such rules undermine the energy transition and negatively affect the company car market.
“Today, only electric vehicles remain truly attractive as company cars,” Philippe Mersch said, adding that this is often perceived as a restrictive option due to reduced Klimabonus subsidies, limited charging infrastructure and concerns over driving range. He called on the government to maintain purchase subsidies, which are currently due to expire at the end of June 2026, in order to sustain momentum.
Looking ahead, Philippe Mersch expressed cautious optimism. “This year should see an acceleration in new electrified powertrains,” he said, pointing to the arrival of more affordable electric vehicles as well as a growing range of hybrid models, an area where manufacturers are increasingly concentrating their efforts.
Moreover, the ACL reported that trends across neighbouring countries remained mixed. In France, 1.72 million new cars were registered in 2025, a 5.2% decline year-on-year. Germany, by contrast, recorded 2.85 million registrations, an increase of 1.4%, according to the Kraftfahrt-Bundesamt. Belgium saw around 420,000 registrations, down 2.1% compared to 2024. Across the European Union, total sales reached 9.2 million vehicles, representing a moderate 2.3% increase, based on consolidated industry data.
