“2022 was not as bad as the figures for new registrations would suggest. This figure must be nuanced with exceptionally high order books in progress,” said Philippe Mersch, president of the Federation of Automobile and Mobility Distributors (Fedamo), at the presentation of of the event.
Looking only at the figures for new registrations, 42,094 new vehicles were registered last year, a fall of 5.1% over one year. In “normal” times--i.e. if it were not for the shortage of semi-conductors and the various disruptions to manufacturers’ logistics flows--a large number of vehicles would have been delivered last year.
“It should be remembered that dealers have absolutely no control over production. There is a time lag between order forms and new registrations, which distorts the figures somewhat. But, normally, delivery times should return to normal during the second half of this year--at least that’s the feedback we have from the manufacturers. And the dealerships will have a growing stock of vehicles of all ranges and engines,” said Mersch.
As a showcase and barometer of the Luxembourg automotive sector, the Autofestival will once again be a key moment: 80 car and motorbike dealerships will participate, taking up 170 showrooms.
The sector hopes to continue the momentum of the last three months, which saw a 7.05% growth in new registrations. The hope is bolstered by the fact that, from 1 January, VAT has been temporarily reduced from 17% to 16%. “This is an additional incentive that should not be overlooked, along with the bonuses associated with the purchase of an electric vehicle. This can indeed weigh in the balance in the consumer’s decision to change their car this year,” the president of Fedamo stressed.
Take note, however: this VAT reduction applies until 31 December 2023, after which the final invoice for a vehicle delivered in 2024 (and ordered in 2023) will be displayed with a VAT rate of 17%, unless this tripartite measure is extended by the next government.
Electricity a major trend
Fedamo also confirmed a certain enthusiasm for new EV registrations. The sale of 100% electric vehicles increased by 4.7% to 6,393 units, which constitutes a total of 15.2% of registrations for the year 2022. Hybrids increased by 2.8%, while plug-in hybrids decreased by 0.9%, due to the abolition of a purchase subsidy for this type of engine from the beginning of 2022.
In total, the share of electrified vehicles registered last year amounted to 43.4%, “which proves the inclination of customers for electrified engines, but also the need to maintain the purchase subsidies that continue to prove their worth,” continued Mersch.
The Fedamo president reminded the audience that the Autofestival is also a festive event and above all “the best opportunity for all those who wish to acquire a new vehicle”.
“Contact your dealership, try out the new models, take advantage of the favourable conditions, the purchase aids and the possibilities of flexible financing and favourable financing conditions with the banks as well as the interesting trade-in offers,” he concluded.
This story was first published in French on . It has been translated and edited for Delano.