Latvia’s new car market saw a notable uptick at the end of last year, with car transaction volumes rising by 7% in October and 13% in November compared to the same period in 2022, according to data from “Citadele Leasing.” This surge, however, contrasts with an overall decline of 6% in new car registrations for 2024, marking a reduction of 1,287 vehicles compared to the previous year.
Leasing remains a preferred financing method, used in approximately 65% of private car purchases and in half of transactions by legal entities. Among brands, Toyota, Škoda, and Volkswagen continue to dominate the market.Toyota maintains its lead, though it faced a 24% drop in new car registrations, attributed largely to decreased activity among corporate clients in the car rental sector. Meanwhile, Renault and Audi emerged as standout performers, with registrations increasing by 23% and 25%, respectively.
For private buyers, the Škoda Kodiaq was the moast popular model in 2024, climbing from fifth place the year before. The volkswagen Tiguan also gained momentum, moving up to second place.Notably, the Škoda Kamiq and Karoq, once staples in the top three, fell out of favor.Among legal entities, the Toyota Corolla and Hilux claimed the top two spots, with the Škoda Octavia rising to third place.
In the electric vehicle segment, the GWM Ora Funky Cat led the pack, followed by the Volkswagen ID.3 and Tesla’s Model Y and Model 3. This aligns with a broader trend across Europe,where demand for alternative fuel vehicles is on the rise. In the Baltic States, sales of these vehicles grew by 15%, outpacing the EU average of 7.7%. Though, Latvia’s growth rate of 3.5% lagged behind neighboring Lithuania (21.8%) and Estonia (14.7%).
Conversely, conventional gasoline and diesel cars continue to lose ground, with Latvia experiencing the steepest decline at 21.8%, compared to 20.1% in Lithuania and 11.2% in Estonia. When it comes to car colors, gray, white, and black remain the most popular, accounting for 64% of private transactions. Blue, green, and red rounded out the top choices, making up 10%, 8%, and 7% of the market, respectively.
Despite the shifting market dynamics, “Citadele Leasing” reported a profitable year, with earnings of 4.527 million euros in 2023. as the automotive landscape evolves, these trends highlight the growing influence of alternative fuels and changing consumer preferences in the region.
what impact will the rise of electric vehicles have on Latvia’s traditional car repair and maintenance industry in the coming years?
Latvia’s Car market in 2024: Trends, Shifts, and Future Outlook
Interview with Janis Berzins, Automotive Market Analyst
Q: Latvia’s car market saw a mixed performance in 2024. Can you break down the key trends?
Janis Berzins: Absolutely. While there was a notable uptick in car transaction volumes toward the end of 2023—with increases of 7% in October and 13% in November compared to 2022—the overall picture for 2024 shows a 6% decline in new car registrations. This translates to 1,287 fewer vehicles registered compared to the previous year.It’s a complex scenario, with leasing remaining a dominant financing method, especially for private buyers, where it accounts for 65% of transactions.
Q: Which brands and models stood out in 2024?
Janis Berzins: Toyota, Škoda, and volkswagen continue to dominate, though Toyota faced a 24% drop in new registrations, mainly due to reduced activity in the corporate rental sector. On the other hand, Renault and Audi saw meaningful gains, with registrations rising by 23% and 25%, respectively.For private buyers, the Škoda Kodiaq emerged as the most popular model, climbing from fifth place in 2023. The Volkswagen Tiguan also gained momentum, moving up to second place. interestingly, the Škoda Kamiq and Karoq, once top performers, fell out of favor this year.
Q: How is the electric vehicle (EV) segment performing in Latvia?
Janis Berzins: The EV segment is growing, albeit at a slower pace compared to neighboring Baltic states. The GWM Ora Funky Cat led the pack in 2024, followed by the Volkswagen ID.3 and Tesla’s Model Y and Model 3. While EV sales in the baltic States grew by 15%, outpacing the EU average of 7.7%, Latvia’s growth rate was just 3.5%. This lags behind Lithuania’s 21.8% and Estonia’s 14.7%. It’s clear that alternative fuel vehicles are gaining traction, but Latvia still has some catching up to do.
Q: What about traditional gasoline and diesel cars?
Janis Berzins: Conventional fuel vehicles are losing ground rapidly. Latvia saw the steepest decline in the region at 21.8%, compared to 20.1% in Lithuania and 11.2% in Estonia. This decline aligns with broader European trends as consumers increasingly opt for more sustainable options.
Q: Let’s talk about car colors. Any notable preferences?
Janis Berzins: Gray, white, and black remain the most popular choices, accounting for 64% of private transactions. blue, green, and red round out the top six, making up 10%, 8%, and 7% of the market, respectively. It’s engaging to see how color preferences remain relatively stable despite changing consumer tastes in vehicle types.
Q: Citadele Leasing reported a profitable year in 2023. What does this tell us about the market?
Janis Berzins: Despite the shifting dynamics, Citadele Leasing’s earnings of 4.527 million euros in 2023 highlight the resilience of the leasing sector. It also underscores the growing importance of flexible financing options in a market where consumer preferences are evolving rapidly.The profitability of leasing firms like Citadele is a positive sign for the automotive industry’s adaptability.
Q: what’s your outlook for latvia’s car market in 2025?
Janis Berzins: I expect the EV segment to continue growing, though infrastructure and affordability remain key challenges. Conventional vehicles will likely continue their decline, and leasing will remain a preferred financing method. One thought-provoking question for your readers: With the rise of EVs and changing consumer preferences, how can Latvia accelerate its transition to a more sustainable automotive future?
Thank you, Janis, for your insights.Readers, feel free to share your thoughts on Latvia’s car market in the comments below!
