In 2023 and 2024, Luxembourg’s automotive powertrain market continued its shift toward electrification, driven by environmentally focused policies and a high-income population. While detailed figures are scarce, the market is expected to follow Europe’s broader growth trend, with a projected CAGR of 9.4% through 2031. Battery electric vehicle (BEV) adoption is bolstered by a well-developed charging infrastructure, as sales of petrol and diesel vehicles steadily decline. However, the market still faces challenges such as elevated battery costs and ongoing global supply chain issues. As a smaller, high-end market, Luxembourg places emphasis on premium electric and hybrid models, with companies like Magna playing a key role in advancing electric powertrain technologies.
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