The growth in the number of electric vehicles in Latvia has noticeably slowed down after the completion of the state support program. Although the share of electric cars continues to increase, the number of new registrations has effectively stopped growing.
In Latvia, the growth of the electric vehicle market has noticeably slowed down for the first time in recent years, writes Dienas Bizness.
According to the Central Statistical Bureau, at the beginning of 2026, the number of newly registered passenger electric vehicles amounted to 1,620 cars. This is 28% more than a year ago, but slightly less than the figure at the end of 2024.
At the same time, the overall car market continues to grow faster — the number of newly registered cars overall increased by 47%.
Despite the slowdown, the share of electric vehicles in Latvia's vehicle fleet continues to gradually increase. It has now reached almost 1.8%. For comparison, in 2024, electric vehicles accounted for about 0.8% of all cars, while in 2020, it was only 0.1%.
In fact, over the past few years, the market has grown exponentially, but it is now becoming evident that the previous rapid growth has begun to hit the cost of vehicles and the reduction of subsidies.
Until the end of 2025, Latvia had a state program to support the purchase of electric vehicles, funded through the Emission Quota Auction Instrument. The amount of assistance for one vehicle ranged from 3,350 to 9,000 euros. However, the main funding for the program was exhausted as early as the summer of last year.
Support was provided to buyers of approximately 5,600 vehicles, including not only fully electric cars but also hybrids.
The market already perceives this as an important signal: the demand for electric vehicles in Latvia largely depended on government subsidies. As soon as the subsidies began to run out, the growth of registrations practically stopped and stabilized at about 1,600 new electric vehicles per year.
For many residents of Latvia, an electric vehicle remains an expensive purchase — especially against the backdrop of high prices, the cost of loans, and relatively slow updates to the charging infrastructure outside major cities.
At the same time, European policy continues to push the market towards a transition to electric transport, so the pressure on traditional cars is likely to only increase in the coming years.
The main question for the market now is whether the demand for electric vehicles in Latvia can continue to grow without direct financial support from the government.
