The ongoing transition towards electric mobility appears to be stagnating in Europe as of late. In Germany, a notable slump has occurred since government subsidies for EVs expired, and while Luxembourg still boasts encouraging figures, the ambitious goals of political leaders no longer seem realistic, according to officials from the House of Automobile.
Gerry Wagner, spokesperson of the representative body, therefore pleads for continued government support while also underlying that levelheadedness is needed: “I would not yet go as far as to call it a crisis. But, there is a loss of pace, particularly against the backdrop of higher expectations and a quasi-anticipated exponential growth. We are far away from that.”
Electric vehicles now represent 22.5% of registrations in Luxembourg. Hopes were that 49% of Luxembourg’s car fleet will be electric by 2030, a goal that Wagner now deems unrealistic: “Such targets were perhaps a bit too ambitious.”
While EVs no longer struggle with as many negative stereotypes as used to be the case when first entering the market on a larger scale, there are still uncertainties around the loss of value and the second-hand market, notes Wagner: “Used EVs almost don’t sell at all, there is no real market for them here in Luxembourg. The cars that we’re getting back almost all end up abroad.”
In light of these trends, the House of Automobile suggests that the government introduce a bonus for used EVs. Wagner meanwhile expects that existing subsidies will be altered and prolonged beyond the current deadline in June this year.
While Wagner believes it is too early to assess whether the EU’s ban on combustion engines can be achieved by 2035, he shared his observation that manufacturers are once again focusing more efforts on EV alternatives.
