Luxembourg car sales grew by just 1.37% in the first three months of 2025 compared to the number of new car registrations recorded in the first quarter of 2024.

According to data from the vehicle registration agency (SNCA), 12,671 cars were newly registered in the first three months of the year, compared with 12,500 a year earlier.

The annual Autofestival at the end of January usually contributes to a rebound in activity at car dealerships in the Grand Duchy. This year’s festival, which ended on 3 February, had an impact with the first quarter figures showing an 18% improvement on sales for the fourth quarter of 2024.

However, the proportion of newly registered internal combustion engine cars in Luxembourg continues to show a steady decline. In the first quarter of 2025, for the first time, less than one in four new cars were petrol-powered. Combustion engines now represent only 35.25% of new registrations, compared with 57% four years ago and 94% six years ago.

At the same time, fully electric vehicles continue to gain ground, flirting with a 30% market share in the first quarter of 2025, when they only represented 2.8% five years ago. Hybrid engines (petrol or diesel) are also doing well with a 35.22% share of new registrations.

German manufacturers maintained their market dominance in Luxembourg in the first quarter of 2025. Volkswagen (1,496 registrations, -7.2%), BMW (1,402, +0.6%), Mercedes (1,210, +22%) and Audi (905, +6.2%) are the leaders in a market that is oriented towards the sedan and premium SUV segment.

Skoda (731, -7.7%) places between the German cars and the French marques Renault (695, +14.5%) and Peugeot (559, +34.4%).

Kia (523, +65.5%), Ford (434, +33.5%) and Hyundai (400, -11.9%) complete the top 10. Tesla, which was the seventh most popular brand in the first quarter of 2024, has fallen to 18th place.

Figures released at the end of January had already indicated the sudden decline of Elon Musk’s all-electric brand as the billionaire bore the full brunt of the controversial policies he was implementing as a senior adviser to US President Donald Trump and his noted associations with the far right. New Tesla registrations fell by 52.3% compared to the first quarter of 2024. Tesla also recorded a 49% fall in sales in the EU in January and February.

After gaining a marginal foothold in Luxembourg, brands from China recorded just 287 new registrations in the first quarter, down from 346 sold a year. MG is in decline, while BYD continued the momentum it had enjoyed over the last three months of 2024.

In the luxury segment, Porsche remains the most popular brand in the Grand Duchy with nearly 300 new registrations in the first quarter of the year. Ferrari and Lamborghini each sold 26 cars, while 16 Aston Martins were registered in the Grand Duchy. Maserati, Jaguar, Bentley, Lotus and Rolls-Royce recorded sales in single figures.

(This article was first published by Virgule. Translation and editing by Duncan Roberts.)