Latvia is a small market in the EU with population of 2 million people. In 2018 the Latvian automotive market continued to grow and in total 67,656 passenger cars (17,185 of those brand new (a 0.8% annual increase)) were registered in Latvia. At the end of 2018, there were 707,841 passenger cars registered in Latvia. Despite its size, Latvian automotive market is growing, and electric vehicles are growing in popularity.
More information on electric vehicle market in Latvia is available here: www.e-transports.org
Summary
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Market entry strategy varies from industry to industry and should be considered in the context of the U.S. company’s overall approach toward the EU. Business agents are commonly used. Businesses, especially small and medium-sized enterprises (SMEs), wishing to enter the market should contact the Embassy for guidance and may wish to consider a visit to Latvia. U.S. made vehicles have to go through the single vehicle approval procedures to apply to the EU regulations/standards. Most commonly, some of the lights have to be changed to meet the EU standards.
Market Entry & Barriers
Market Trends & Demand
According to the CSDD statistics, there were 67,656 small/medium vehicles registered for the first time in 2018 in Latvia. This number includes both new and used vehicles purchased. Compared to 2017, the demand for the new vehicles has only slightly increased by 0.8%, reaching a number of 17,185 newly purchased cars. In addition, the number of passenger vehicles purchased has decreased by 0.62% in comparison to 2017.
Out of all widely spread carmaker brands in Latvia, the most popular ones are “Volkswagen” (market leader), “Audi”, “Volvo”, “Opel”, “BMW”, “Toyota”, “Ford”, and “Mercedes Benz”. Based on the vehicle classification statistics, the most popular are the compact crossover cars, with the most popular model being “Nissan Qashqai”. Second most popular type is the compact cars, and there most purchased one is “Volkswagen Golf.
All in all, “Volkswagen” sold 17.9% of the new cars in 2016. “Toyota” is the second most popular with 15.65% of the sales. “Skoda” is 3rd with 8.79%.
Best prospects are:
General equipment and tools for service stations
Specialty/utility vehicles
Vehicle accessories
For More Information about exporting to Kazakhstan contact:
Guntars Vicmanis
Commercial Specialist - Global Auto & Smart Mobility Team
U.S. Embassy Riga, Latvia
+371 67107141
latvia