The Autofestival accounts for up to 30% of annnual sales for dealers in Luxembourg (Photo: Shutterstock)
Luxembourg’s annual Autofestival is scheduled to take place from 25 January to 8 February with dealers hoping for a better year after registrations of new cars plummeted by 18.6% in 2020.
“2021 will be the year of automotive choice, of digitalisation, and client care,” said Frank Lentz of the federation of automobile distributors (Fedamo) during a press conference on 11 January. The festival, he said, will be the best time to buy a car.
Around 18,000 vehicles are sold annually during the Autofestival. “It depends on the brand, but this represents 10 to 20% of annual sales,” said Olivier François, marketing manager at Bilia Emond, which specialises in BMW-Mini models.
For some dealerships, the Autofestival makes up as much as 30% of annual sales, said Guido Savi, spokesman for Febiac Luxembourg, a Belgian automotive federation with a seat in Luxembourg.
The Autofestival has been extended this year to allow customers more time to shop and prevent crowds as dealerships face restrictions on the number of customers they can admit.
But the director of operations at Autopolis, Marc Devillet, estimates that people are ready to buy. “We see it in the showrooms; there’s a strong demand.”
National statistics office Statec last week said it expects consumer spending to rebound this year, estimating that households had racked up €1.2bn in savings last year.
“When will we get back to 2019 levels? That’s a very good question,” said Devillet. “In Luxembourg, we benefit from an audience that changes vehicles more frequently than in other countries,” he said, estimating that industry “shouldn’t stay in crisis for too long.”
One in five new registrations in 2020 were for electric or hybrid vehicles. The market share for hybrids increasing from 5.7% in 2019 to 14.4% last year, while e-cars made up 5.3% of sales last year, compared to 1.8% in 2019.
“The purchase premium has produced an interesting effect and the number of new products available on the market is important,” said Devillet. “2021 will be the year of electrification,” said Frank Lentz of Fedamo.
This article was originally published in French on paperjam.lu and has been translated and edited for Delano.