Luxembourg Car Market in 2025 fails to expand significantly. Full-year figures grew only 0.4%, with Ford climbing 7 spots into 7th while Volvo left the Top 10. Tesla reported the sharpest losses, down 45.3% in 18th while also driving EV contraction.
Economic Environment
In 2025, Luxembourg’s economy is expected to grow modestly by 0.8%, marking the early phase of a gradual recovery after several years of subdued activity. Growth in 2025 has been supported by higher government consumption, resilient private consumption underpinned by wage indexation, and a tentative rebound in exports, while easing inflation has helped stabilise households’ real disposable income. Business activity has begun to improve, particularly in manufacturing and financial services, aided by lower interest rates, although construction remains weak and continues to weigh on overall performance. External conditions remain mixed, with limited direct exposure to US trade restrictions but subdued demand from key partners, notably Germany, constraining export momentum.
Fiscal policy is projected to remain broadly neutral, balancing tax relief and energy price subsidies against higher public investment in digital, green and productivity-enhancing projects. Looking ahead, growth is set to strengthen in 2026–27 as investment and financial sector activity recover more decisively, though the outlook hinges on housing market improvements, external demand conditions and the implementation of structural reforms to support productivity, skills and housing supply.
Automotive Industry Trend and Outlook
While Luxembourg’s car market reported an impressive expansion in recent years, 2025 figures highlighted a setback. Year-on-year change fluctuated between 0.5% and -3%, totalling a 0.5% gain in full-year figures to 46,673 units sold.
Brand-wise, Volkswagen secured leadership with a 12.5% share (-1.6%), followed by BMW (-4.1%), Mercedes (+12.3%) and Audi (+0.7%).
Skoda closed the top 5 while gaining 4.2%.
Notably, Ford rose 7 spots and 65.7% into 7th whle Tesla fell from 8th into 18th, dropping 45.3%.
Looking at models, the Peugeot 208 was still the best seller, up 10%. The Volkswagen Golf ranked 2nd while growing 2 spots (+21.8%).
EV Market Trend and Outlook
Luxembourg’s EV market is stagnating, falling 17.5% in 2025 to a 10% share. Despite the ambitious government’s targets, budget constraints pose a hurdle for implementing the desired subsidy schemes to support EV adoption.
Tesla remained the top EV brand despite a 59.4% decline, followed by Volkswagen and Audi.
Medium-Term Market Trend
Between 2010 and 2019, Luxembourg’s car market remained broadly stable, with limited year-on-year volatility ranging from a low of -7.5% in 2013 to a high of +6.6% in 2014. Sales peaked in 2019 at 54,749 units, marking the strongest performance of the decade.
The outbreak of the pandemic in 2020 triggered a sharp contraction, with registrations plunging by 17.6% to 45,097 units, the lowest level recorded over the period. A modest recovery followed in 2021, when sales edged up by 4.6% to 47,156 units. However, momentum weakened again in 2022, as the market declined by 10.7% to 42,087 units.
In 2023, the market continued to face headwinds linked to structural challenges in the automotive industry, notably global supply-chain disruptions caused by shortages of key raw materials, particularly semiconductors, as well as the government-led push toward electric vehicles, which remain a costly option for lower-income consumers. These pressures persisted into 2024, when car sales fell further to 40,732 units, down 5.37% year on year. Electric vehicle registrations increased only marginally, reaching 4,673 units in 2024 compared with 4,639 units in 2023, underscoring the still-gradual pace of electrification in the Luxembourg market.
Tables with sales figures
In the tables below we report sales for all Brands and top 10 Manufacturers Group.
