The Market for New Cars in Estonia Plummeted by 50% 0 11

The car market in Estonia sharply contracted in 2025: sales of new and used cars fell by almost half compared to last year. In Latvia and Lithuania, sales, on the contrary, are growing.

According to AMTEL data, this year sales of both new and used passenger cars have halved, and the import of used cars from abroad has decreased by about the same amount, reported "Aktuaalne Kaamera."

"In Tallinn, the market has fallen by about 40%, but in Tartu or Ida-Viru County, it has dropped by about 70%. Estonia has never experienced such a decline in the economy or business in any sector," said AMTEL Executive Director Meelis Tellingkivi.

According to him, it will take three to five years to restore the market, and the decline in sales is already having a negative impact on the sector.

"The most serious problem in our sector is the closure of small dealerships, especially in small towns. Many of them have already ceased operations because there are no customers, which means there is no business and service maintenance. It is extremely difficult for us to retain good and qualified specialists in the industry, and this is not just about selling cars, but specifically about service and maintenance," pointed out Auto Bassadone Executive Director Veiko Karu.

He added that people now prefer to drive their old cars until the last moment and are increasingly choosing used cars. This leads to a gradual aging of the vehicle fleet in Estonia. One of the reasons for the decline in the car market, specialists say, is the overall rise in prices and the registration fee when purchasing a car.

"I think the registration fee played a significant role. When this law was planned, too large amounts were added. The government planned to receive a registration tax of 137 million, but in reality, this year the government will receive about 60 million," said Tellingkivi.

The Ministry of Finance acknowledged that the forecast for registration fee revenues was overestimated.

"Overall, the government will receive more taxes this year than initially planned. But we overestimated the registration fee revenues, which were lower. The summer forecast was 90 million, and I think it will also not be met by the end of the year," said the Vice Chancellor of the Ministry of Finance Evelin Liivamägi.