The Latvian new car market witnessed a mixed performance in 2024,marked by a notable surge in activity toward the end of the year but an overall decline in transactions. According to data from Citadele Leasing, car transactions increased by 7% in October and 13% in November compared to the same period in 2023. However, the year as a whole saw a 6% decline, with 1,287 fewer new cars registered than in 2023.
Leasing remains a popular financing option, with private individuals using it in approximately 65% of cases, while legal entities opt for leasing in every second transaction. The market continues to be dominated by Toyota, Škoda, and Volkswagen, with toyota maintaining its led despite a 24% drop in new car registrations. This decline is attributed to fewer transactions by legal entities in the car rental sector.Meanwhile, Renault and Audi saw significant growth, with new car registrations increasing by 23% and 25%, respectively.Among private buyers, the Škoda kodiaq emerged as the most popular model, moving up from fifth place in 2023.The Volkswagen tiguan also climbed the ranks, securing the second spot.For legal entities, the Škoda Octavia entered the top three, joining Toyota’s Corolla and Hilux.
The electric vehicle (EV) segment saw the GWM Ora Funky Cat as the most purchased model, followed by the Volkswagen ID.3 and Tesla’s Model Y and Model 3. The demand for alternative fuel vehicles is growing across the Baltic states, with a 15% increase in sales, compared to the EU average of 7.7%. However,Latvia lags behind its neighbors,with only a 3.5% increase, while Lithuania and Estonia saw rises of 21.8% and 14.7%, respectively.
Conventional fuel cars,on the othre hand,continue to decline,with Latvia experiencing the sharpest drop at 21.8%. In terms of car colors,gray,white,and black dominate,accounting for 64% of private car transactions. Blue, green, and red follow as the next most popular choices.
| Category | 2024 Performance |
|---|---|
| Overall Market | 6% decline |
| October Transactions | 7% increase |
| November transactions | 13% increase |
| EV Sales Growth (Baltic States) | 15% increase |
| Conventional Fuel Car Decline (latvia) | 21.8% decrease |
Despite the challenges,Citadele Leasing reported a profit of 4.527 million euros in 2023, highlighting its resilience in a fluctuating market. As the automotive landscape evolves, the shift toward alternative fuels and changing consumer preferences will continue to shape Latvia’s car market in the years to come.
,marked by a notable surge in activity toward the end of the year but an overall decline in transactions. According to data from Citadele Leasing, car transactions increased by 7% in October and 13% in November compared to the same period in 2023. However, the year as a whole saw a 6% decline, with 1,287 fewer new cars registered than in 2023.
Leasing remains a popular financing option, with private individuals using it in approximately 65% of cases, while legal entities opt for leasing in every second transaction. the market continues to be dominated by Toyota, Škoda, and Volkswagen, with toyota maintaining its led despite a 24% drop in new car registrations. This decline is attributed to fewer transactions by legal entities in the car rental sector.Simultaneously occurring, Renault and audi saw significant growth, with new car registrations increasing by 23% and 25%, respectively.Among private buyers,the Škoda kodiaq emerged as the moast popular model, moving up from fifth place in 2023.The Volkswagen tiguan also climbed the ranks, securing the second spot.For legal entities,the Škoda Octavia entered the top three,joining Toyota’s corolla and Hilux.
The electric vehicle (EV) segment saw the GWM Ora Funky Cat as the most purchased model, followed by the Volkswagen ID.3 and Tesla’s Model Y and Model 3. The demand for choice fuel vehicles is growing across the Baltic states, with a 15% increase in sales, compared to the EU average of 7.7%. However,Latvia lags behind its neighbors,with only a 3.5% increase, while Lithuania and Estonia saw rises of 21.8% and 14.7%, respectively.
Conventional fuel cars,on the othre hand,continue to decline,with Latvia experiencing the sharpest drop at 21.8%. In terms of car colors,gray,white,and black dominate,accounting for 64% of private car transactions. Blue, green, and red follow as the next most popular choices.
| Category | 2024 Performance |
|---|---|
| Overall Market | 6% decline |
| October Transactions | 7% increase |
| November transactions | 13% increase |
| EV Sales Growth (Baltic States) | 15% increase |
| Conventional Fuel Car Decline (latvia) | 21.8% decrease |
despite the challenges,Citadele Leasing reported a profit of 4.527 million euros in 2023, highlighting its resilience in a fluctuating market. As the automotive landscape evolves, the shift toward alternative fuels and changing consumer preferences will continue to shape Latvia’s car market in the years to come. the article.“`html
Latvia’s New Car Market: A Mixed Bag of Declines and Growth in 2024
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In 2024, the Latvian new car market experienced a mixed performance, with a notable surge in activity toward the end of the year but an overall decline in transactions. We sat down with Anna Bērziņa, an automotive market specialist, to discuss the trends, challenges, and opportunities shaping Latvia’s car industry. From the dominance of leasing to the rise of electric vehicles, Anna shares her insights on what’s driving change in the market.
Overall Market Trends: Declines and Late-Year Surges
Senior Editor: Anna, the Latvian new car market saw a 6% decline in 2024 despite a 7% increase in October and a 13% surge in November. What factors contributed to this mixed performance?
Anna Bērziņa: The year started with cautious consumer behavior, partly due to economic uncertainty and high inflation. Though, the end-of-year surges in October and November can be attributed to several factors: dealerships offering significant discounts, seasonal promotions, and buyers aiming to secure new vehicles before year-end. It’s also worth noting that the leasing model played a significant role in facilitating these transactions, especially for private individuals.
The Role of Leasing in Latvia’s Car Market
Senior Editor: Leasing seems to be a preferred financing option, with 65% of private transactions relying on it. Why is leasing so popular in Latvia?
Anna Bērziņa: Leasing offers versatility and affordability, which are especially appealing in a market where upfront costs can be a barrier. For private buyers,it allows them to spread payments over time while still enjoying the benefits of a new car. For legal entities, leasing is often a tax-efficient solution, which explains why every second business transaction involves leasing. Companies like Citadele Leasing have also made the process seamless, further boosting its popularity.
Market Leaders and Shifting Preferences
Senior Editor: Toyota, Škoda, and Volkswagen continue to dominate the market, but we’ve seen shifts in their performance. What’s driving these changes?
Anna Bērziņa: Toyota’s 24% drop in registrations is primarily due to reduced activity in the car rental sector, where legal entities play a significant role. Conversely, brands like renault and Audi have seen notable growth, with increases of 23% and 25%, respectively. This reflects changing consumer preferences, with buyers increasingly seeking models that balance performance, design, and affordability.
Among private buyers, the Škoda Kodiaq has emerged as the top choice, moving up from fifth place in 2023. The volkswagen Tiguan has also gained traction, securing the second spot. For businesses, the Škoda Octavia has joined Toyota’s Corolla and Hilux in the top three, highlighting its versatility and reliability.
The Rise of Electric Vehicles in the Baltic Region
Senior Editor: The EV segment is growing across the Baltic states,but Latvia seems to lag behind Lithuania and Estonia. What’s behind this trend?
Anna Bērziņa: While the Baltic region as a whole saw a 15% increase in EV sales, Latvia’s 3.5% growth is modest compared to Lithuania’s 21.8% and Estonia’s 14.7%. This gap can be attributed to differences in infrastructure,government incentives,and consumer awareness. Latvia still lacks widespread charging stations, and the incentives for EV adoption are not as robust as in neighboring countries. That said, models like the GWM Ora Funky Cat and Volkswagen ID.3 are gaining popularity, signaling a gradual shift toward electrification.
Decline of Conventional Fuel Cars and Color Trends
Senior Editor: Conventional fuel cars are declining sharply, with Latvia experiencing a 21.8% drop.Is this a sign of a long-term shift?
Anna Bērziņa: Absolutely. The decline in conventional fuel cars is driven by environmental concerns, stricter regulations, and the growing availability of alternative fuel options. This trend is highly likely to accelerate as more consumers and businesses embrace EVs and hybrids. On a lighter note, car colors remain consistent, with gray, white, and black dominating 64% of private transactions. These neutral shades are timeless and resell well, which explains their enduring popularity.