Financial aids are to be increased to incentivise companies to switch over to electric vehicles instead of fossil-fuelled ones.

At the moment, about 96,000 company vehicles are regularly circulating the Grand Duchy, thereby representing 26% of the country's entire motorised traffic. The government wants this fleet to become more climate neutral over time.

One in two car registrations is made by a business, and the fact that, on average, they only use their vehicles for three to four years, so half as long as private households, shows the importance of the market. The government intends to further amend its financial aids to only make electric vehicles interesting by 2025. The Ministry of Finance and the Ministry of Mobility will soon give a joint presentation on the adjustments.

Officials from the Luxembourgish automobile sector still have their reservations about the government strategy, as they see a risk for a destabilising of the market. Gerry Wagner, spokesman for House of Automobile, noted: "In general, we support the aim of only subsidising electric company vehicles by 2025, but there are still practical issues that need to be solved along the way."

The big issue is the question of where to charge all these electric company vehicles. The public network is far too insignificant to cover the growing demand, and often there is not enough power available, concluded Wagner: "Expensive infrastructure work has to be done, considering that one transformer costs between €100,000 and €150,000."

The spokesperson therefore noted that realistic goals have to be set so that infrastructure is up to date and able to cover the growing needs of the mobility sector. Wagner believes there is the risk of creating a discouraging effect if the people are not provided with the necessary means to manage electric company vehicles.