Headline Target: No sales of vehicles producing CO2 by 2035 (EU phase-out)

Car Manufacturing Country: No passenger car manufacturing.

Purchase Incentives for Cars: Individual purchase grant, Ownership tax reduction, administrative tax reduction. Exclusive incentives: company tax reduction.

Supplier Regulation Policy: EU emissions performance standard (Tightening CO2 regime)

Infrastructure Incentives: Purchase grants for private chargers.

Luxembourg’s small market has electrified quickly and occupies a larger slice of the market than diesels, a trend being seen in a number of countries.

Many EVs in the country are acquired by motorists through leasing, with motorists still able to access the grant which the government offers to new registrations.

One problem which policy must seek to solve is the retention of EVs in the country. This is because the majority of leased vehicles are sold elsewhere once their lease is up. Retaining the EVs to be sold on the used vehicle market will be crucial to ensuring the total number of EVs on the road continues to rise, rather than fall.