The internal combustion engine in Luxembourg continues to lose ground

Luxembourg's new car market has shrunk for the second consecutive year, with 41,076 cars registered between January and November 2025, 2,467 fewer than in the same period in 2024. Despite this, the sales mix is changing rapidly, with the country accelerating its shift towards more environmentally friendly engine types.

Hybrid cars have become the main driver of this transformation. Their share of new registrations has reached 37.7 per cent - a marked increase from 30.5 per cent in 2024. This is above the EU average of 34.6 per cent and suggests that hybrids are becoming the 'golden mean' for drivers not yet ready to fully switch to electric vehicles but seeking a greener choice.

The situation is different with pure electric vehicles (BEVs). Although Luxembourg is still ahead of the rest of Europe with 26.2 per cent of sales compared to 16.9 per cent in the EU, there is a slight decline compared to 2024 (27.3 per cent). This can be attributed to the limited choice of available models and the still expensive charging infrastructure for private individuals.

Against the backdrop of the growth of alternative solutions, classic petrol and diesel cars are rapidly losing ground. In 2025, their share is only 36.2 per cent, compared to 42.2 per cent in 2024. By comparison, in the EU as a whole, internal combustion engines have taken up only 27% of the market, indicating an even sharper decline of traditional types of transport on a pan-European level.

Nevertheless, globally, the automotive market has yet to recover from the crisis of the beginning of the decade. According to the EY consulting company, consumers are cautious, while economic instability and the high cost of new cars are restraining demand. In particular, potential buyers are increasingly postponing fleet renewal, waiting for more affordable electric cars to become available.