The electric car market in Latvia faces fears of a downturn after the end of the support program
There is unrest in the Latvian electric car industry in connection with the conclusion of the European Climate Infrastructure and Investment (ECII) support program for the purchase of electric cars. This program has so far been the main engine that promoted the development of green mobility and ensured the rapid growth of the market, enabling the purchase of more than 6,400 electric cars, which make up approximately 40% of all electric vehicles (BEVs) registered in Latvia.
Much of the support was used as a down payment on leasing, which particularly helped families, including large families, by providing access to not only greener, but also newer and safer transport. The demand for the program was huge – almost 900 purchases were supported in August 2024 alone, which shows strong public interest. Jānis Bekers, representative of the Latvian Electric Auto Society, emphasizes:
EKII’s support gave people additional motivation to take a step towards green transport. The program was very successful, especially for large families, and its continuity is critically important if Latvia wants to achieve the set e-mobility goals.
However, the end of the program raises concerns about a significant decline in the electric car market. Car dealers and buyers are becoming more cautious, and the used electric car segment could be particularly affected. Although there is no certainty about the renewal of support before 2026, experts warn of the need to introduce a new program as soon as possible to maintain the progress made. It is important to remember that the financing of EKII came from the revenues of auctioning emission allowances, not directly from taxpayers’ funds.
The need for continuous support
The Latvian electric car market has experienced significant growth in recent years. By July 2025, more than 11,000 fully electric cars had been registered in the country, which is 51% more than a year earlier. The total number of electric vehicles exceeded 13,000. The share of electric cars in the new car market continues to grow – in 2023, almost every tenth new car registered was a BEV or a hybrid car (PHEV). These indicators confirm a stable and growing public interest. However, without the creation of a new support program, there is a risk that this progress will stop, especially affecting the family and used electric car segment.
In order to maintain the pace of growth and ensure Latvia’s competitiveness in the field of e-mobility, it is necessary to urgently introduce a new support program. If it is delayed until 2026, there is a risk of losing the results achieved and slowing down the path to achieving the climate goals.
Expert opinion on the future of the market
Leasing expert Matīss Janevičs Dambis points out that interest in electric cars in Latvia has grown rapidly over the past five years, especially since the start of the EKII support program in 2022. He notes that the last few months have been very active, a third of all cars financed by private individuals were hybrids or electric cars.
Financial institutions are looking for solutions to promote accessibility, but Dambis predicts a slight drop in the market after the end of the EKII program, although not as drastic as it might initially seem. Roberts Jansons, the organizer of the Latvian e-car competition, agrees that the drop will not be the result of a decrease in interest, but rather a natural waiting effect. He emphasizes that the previous program was an excellent stepping stone for those who do not have problems with obtaining financing, but whose savings are not large enough to cover the down payment.
Although the used electric car market is growing, and in 2025 they will already account for 70% of financed transactions, it is important to be aware of potential problems such as battery condition and suspension wear. Careful diagnosis before purchase is essential.
The Ministry of Climate and Energy, together with the Environmental Investment Fund, is already working on the development of a new support program, which is planned to be implemented at the beginning of 2026. The possibility of providing support to less protected households and micro-enterprises from the funds of the European Social Climate Fund is also being evaluated. The Latvian Electric Auto Association calls for no obstacles in the preparation of the new program in order to ensure continuous progress on the way to climate neutrality.
