The future of urban mobility in Luxembourg: electric bicycles, electric cars and charging infrastructure

Current situation (2024-2025)

Luxembourg is already one of the leading countries in electrification. Despite its small size, it is confidently promoting sustainable mobility, both in terms of small vehicles and passenger transport.

Electric bikes: Rise in popularity

Electric bikes have become an integral part of Luxembourg's urban landscape. The vel'OH! rental system has completely switched to electric drive, offering around 1,000 electric bikes at 116 stations. This 2018 modernisation led to a five-fold increase in demand, with more than 800,000 trips in 2021. Today, the number of long-term subscribers exceeds 20,000, with more than 50,000 short-term tickets sold. Electric bikes make travelling through Luxembourg's hilly landscape much easier, reaching speeds of up to 25 km/h.

In addition to rentals, residents are actively buying personal electric bikes. The market is forecast to grow by about 20% per year until 2029. The average electric bike owner is a 35-50 year old person who values quality and safety, which is reflected in frequent visits to service centres for maintenance. In 2023, the pace of new electric bike purchases slows slightly due to market saturation; the focus now shifts to maintenance and durability.

Electric vehicles and charging stations: national coverage

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Luxembourg is also actively transitioning to electric vehicles: at the end of 2023, more than 30,000 electric vehicles (including hybrids) were registered, representing around 15.7% of the country's total vehicle fleet. Sales of new electric vehicles grew by 72% in 2023.

Charging costs remain modest, at around €0.48 per kWh from 2025, although some operators are offering discounts.

Carsharing: niche but promising

Carsharing is not so popular yet, but it is present. There are two main networks: Flex (national, about 60 stations) and Carloh (municipal in Luxembourg city, 19 car parks). Their aim is to provide an alternative to owning a private car for occasional journeys. However, so far the effect has been moderate: Carloh, for example, makes only 200-300 journeys per week. Nevertheless, each carshare vehicle can replace up to 10 private cars. The Modu 2035 National Strategy includes carsharing as an element of multimodal "mobility hubs".

The main problem with Luxembourg carsharing is that it is completely inconsistent with the principle of service. Carsharing implies that a user can find a car in his immediate vicinity, make a trip and leave the car at the end point where it can be picked up by the next user.

However, in Luxembourg you are obliged to turn up at the car park, get the keys, and return the car to the same car park at the end of the journey, making Luxembourg carsharing effectively just another car rental service.

State and municipal policy

The Luxembourg government is actively encouraging the adoption of electric vehicles and active mobility through the Klimabonus Mobilitéit subsidy programme. Subsidies for new electric vehicles can be up to €6,000. There is also a new €1,500 premium for the purchase of a second-hand electric vehicle older than 3 years, which should stimulate the secondary market.

• For active mobility, a compensation of 50% of the cost of a conventional or electric bicycle (maximum €600) was available until autumn 2024, but from October 2024 this subsidy is only available for people with low incomes.
• A new support of up to €1,000 (50% of the price) for the purchase of a cargo bike (cargo bike) has been introduced to encourage families and courier services to switch to eco-friendly bicycle haulers.
• Reduced the VAT rate on electric bicycles from 17% to 8%.

Strategic goals: fewer private cars by 2030-2035

Luxembourg has set ambitious targets to reduce motorisation and CO₂ emissions. By 2030, national emissions should be reduced by 62% from 2019 levels and almost 49% of all cars should be electric. The capital, as part of its own Mobilitéitsplang 2035 strategy, plans to raise the share of cycling to 11% and reduce private car use to 25% of total journeys.

To achieve these goals, bicycle infrastructure is being actively expanded: new cycle lanes (including "cycle highways") are being built, bicycle streets are being introduced, and car traffic speeds in residential areas are being reduced. Amendments have been made to traffic rules, such as a mandatory 1.5 metre interval when overtaking a cyclist. The Ministry of Mobility now requires cycling infrastructure to be included in every new transport project.

The role of free transport and multimodality

From 1 March 2020, all public transport in Luxembourg (buses, trams, trains) became free of charge. This is an unprecedented step designed to reduce the population's "attachment" to personal cars. However, analysis has shown that a zero fare alone does not guarantee the abandonment of the car.

The authorities are investing in improving the quality and coverage of public transport:

• The tram network is being expanded: 4 full tram lines are planned by 2030.
• The railway is being modernised, including 14 major projects for new lines and additional track.
• Mobility Hubs" - hubs where you can comfortably change from one mode of transport to another - are being developed.

The Mobilitéit.lu app has become a full-fledged Mobility-as-a-Service (MaaS) platform, bringing together information on all modes of transport, providing door-to-door routes and incentivising the choice of public transport.

Future Trends (2025-2030)

The number of electric transport users is predicted to grow steadily over the next 5-10 years. The electric bicycle market is expected to grow by around 20 per cent annually, and electric bikes are likely to soon surpass conventional bicycles in terms of share of new purchases. Luxembourg ranks among the top 10 countries in Europe on the "electromobility readiness" index due to its high income, generous subsidies and short distances, which reduces "range anxiety". By the end of the decade, most new cars sold are likely to be battery-powered, especially given the planned ban on new internal combustion engine vehicles in the EU by 2035. We can also expect the urban landscape to change: car parks will be equipped with charging sockets, petrol stations will be transformed into electric petrol stations.

Ionut Zamfir, Unsplash

The concept of "multi-format mobility" will also become part of everyday life. Luxembourg is already striving to realise the concept of Mobility as a Service, and the Mobilitéit.lu platform has laid the groundwork by combining timetables and data from different operators. The next step is to add booking and payment functions for services. By 2030, we can expect to see a single digital pass for the entire metropolitan area, including bike hire and other services. Park-and-Ride systems are also likely to be developed, where a trip will comfortably combine a morning journey by private car to a peripheral hub and then a transfer to a rapid public transport system or a bicycle.

Luxembourg is closely following the development of unmanned vehicles. Autonomous small shuttles are already being tested: in 2023, the railway company CFL launched a pilot project of two self-driving mini-buses in the Esch-Belval area, which will start regular services by 2024. If the trials prove successful, the expansion of such services to other neighbourhoods could be imagined by the 2030s. In addition to shuttles, Luxembourg is involved in European initiatives on autonomous driving. It is likely that robotaxis or autonomous carsharing in restricted areas will become a reality in the decade ahead, although the authorities emphasise that drones will complement rather than replace public transport.

International Context: Neighbours and Role Models

Luxembourg is ahead of neighbouring countries in the transition to sustainable mobility by a number of indicators. For example, Luxembourg is ahead of France (~15% at the end of 2023) and Belgium in terms of the share of electric vehicles in the car fleet (~8%). However, Luxembourg is still lagging behind in terms of "cycling": in 2017, bicycles accounted for only 2% of all urban mobility, compared to 5-15% in Brussels or Paris.

Luxembourg could well learn from Belgium's experience in promoting e-bikes, where more than 15% of the population already uses an electric bicycle at least once a year. France is interesting in its policy of limiting the entry of cars into cities. Germany, on the other hand, relies on technological innovation (e.g. hydrogen transport), and Luxembourg is also moving in this direction, subsidising fuel cells and planning hydrogen buses.

The Grand Duchy is equally influenced by strong examples of good practice in neighbouring cities. Amsterdam demonstrates how bicycle infrastructure can radically change urban mobility, where up to 38% of all trips are made by bicycle. Copenhagen is known for having ~62% of residents cycling to work or school thanks to safe cycle lanes and prioritisation of traffic lights for cyclists. Zurich is often cited as a model of balance between the car and alternatives, adhering to a "no more cars" policy. Luxembourg could learn from Zurich's idea of a strict parking limit in the centre.

Luxembourg may well use its compactness to promote the idea of travelling without a private car.

Practical challenges and problems

Most of the innovations are implemented in the metropolitan area. For truly inclusive "mobility for all", it is important to develop the network beyond Luxembourg city limits. The government is aware of this: the national cycle network is planned to connect rural areas as well, and new railway stations and interceptor car parks are being built. However, residents in remote communities are still heavily dependent on private cars.

Pablo Merchán Montes, Unsplash

The spread of electric scooters and electric bicycles raises the issue of safety. Luxembourg has already amended legislation to protect the rights of vulnerable road users. Nevertheless, accidents involving electric bicycles and scooters require attention. Higher speeds (25 km/h and above) mean that collisions can be more severe. Infrastructure to separate streams and user education is needed. Enforcement is also important, as not all drivers follow the rules, such as the mandatory 1.5 metre interval when overtaking cyclists.

The transition to sustainable mobility is not only about infrastructure, but also about people's habits. Luxembourg has to overcome an established "car-centric" lifestyle. Many people are used to travelling even short distances, and although free transport has removed the financial barrier, psychological barriers remain, such as a reluctance to give up the comfort of a private car for the inconvenience of public transport.

Luxembourg, with both resources and political will, is an interesting example for Europe today. The country shows that radical measures - free transport, large-scale subsidies, an integrated approach - can work if they are persistently implemented. There is still a lot of work ahead, but the most important and interesting changes are already taking place. Luxembourg is well on its way to a mobile, electric and sustainable future with a focus on the quality of life of its citizens and the preservation of the environment.