Luxembourg Car Market in 2024 faced setbacks, down 4.9% to reach 46,485 units. BMW surged 10.5%, threatening Volkswagen leadership. EV Market fell 3.3%, struggling to meet with ambitious targets.
Market Trend and Outlook
Luxembourg’s economy is projected to see modest GDP growth of 1.2% in 2024, before accelerating to 2.3% in 2025 and 2.2% in 2026, supported by fiscal expansion, falling interest rates, and recovering financial services. Inflation is expected to decrease to 2.3% in 2024 due to lower energy and food prices, but will slightly rebound to 2.4% in 2025 before dropping to 1.8% in 2026 as energy inflation turns negative.
The labor market is set to weaken, with unemployment rising to 6.0% in 2024 before stabilizing and slightly improving to 5.8% in 2026 as employment growth picks up. The general government balance is projected to remain in a small deficit, reaching -0.6% of GDP in 2024, widening to -0.8% in 2025 due to economic support measures, and narrowing again in 2026 as revenue growth outpaces expenditures. Public debt is expected to rise gradually to 27.5% of GDP by 2026, driven by ongoing deficits and social security adjustments, while high public investment continues to support digital and green transitions.
Luxembourg’s EV market contracted by 3.3% in 2024, struggling to meet ambitious targets, though EVs still hold a significant 9.65% market share.
Tesla remained the top EV brand despite a 10.3% decline, followed by Volkswagen and Audi.
Overall, Luxembourg’s car market faced a downturn in 2024, dropping 4.9% to 46,485 units, with negative growth persisting throughout most of the year.
Looking at cumulative data up to December 2024 brand-wise, Volkswagen secured dominant position with 5,934 sales (+1.9%), followed by BMW with 5,428 (+10.5%), Mercedes at 3,870 sales (-7.4%) and Audi -down 1 spot- with 3,407 sales (-13%).
In 5th ranked Skoda at 2,976 sales (+3.3%), followed by Renault -up 1 spot- at 2,074 (-14.3%) and Peugeot -down 1 spot- in 7th with 1,912 (-23.7%).
Tesla ranked into 8th with 1,677 sales (-2.8%), followed by Volvo -up 3 spots- in 9th at 1,634 (+20.3%) and finally Kia in 10th position with 1,530 cumulative sales (+8.7%).
Medium-Term Market Trend
The car market in Luxembourg between 2010 and 2019 hasn’t had any major fluctuations, with year-on-year variations moving between a -7.5% in 2013 and a maximum of +6.6% in 2014. The market reached a peak in 2019 at 54,749 sales.
The following year the pandemic arrived causing the car market in Luxemburg to collapse 17.6% reaching 45,097 sales by the end of 2020, lowest level of sales of the decade.
Post-Covid in 2021 sales grew back slightly reaching 47,156 (+4.6%). While in 2022 sales dropped 10.7% to 42,087.
The car market in 2023 will have to confront some issues within automotive industry that put negative pressure on sales: the disruption in the global supply chain caused by a lack of raw materials, in particular for the production of microchips and Governments push towards Evs, an expensive alternative for low income consumers.
Tables with sales figures
In the tables below we report sales for all Brands and top 10 Manufacturers Group.
