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October 21, 2025 – Latvia’s electric vehicle market is roaring back to life after a brief winter slump, powered by renewed government subsidies and a surprising surge in Chinese brands. New data shows that used EVs now account for more than two-thirds of all registrations, while Chinese models like BYD’s Sealion 7 and Lynk & Co’s 02 are climbing the new-car ranks.
The revival follows the launch of the updated EKII-2 subsidy program in spring 2025, which allocated €40 million (roughly $43 million) to encourage EV adoption. By late August, 33% of that pot—€13.2 million—had already been claimed. Local experts estimate the remaining €26.8 million could last until April 2027, assuming current demand holds.
“The first EKII program ran out of funds last autumn, and the market froze almost overnight,” says Riga-based automotive analyst Jānis Bērziņš. “The new EKII-2 is better structured and has already sparked a clear uptick in both new and used EV sales.”
According to the Latvian Road Traffic Safety Directorate, 67.5% of all EVs registered in the first half of 2025 were second-hand vehicles: 1,750 used cars versus 843 new ones. That skew highlights a key trend: Latvian buyers are cost-conscious and increasingly see used EVs as a practical entry point, especially with the subsidy covering part of the purchase price.
In the new-car segment, Chinese brands are making significant inroads. The Toyota bZ4X led with 97 registrations, but the BYD Sealion 7 came in second with 74, followed by the Lynk & Co 02 with 52. The Renault 5 E-Tech Electric (43 registrations) and Tesla Model Y (30) rounded out the top five.
“The BYD Sealion 7 is attracting buyers who want a modern, well-equipped EV at a price that competes with Japanese and Korean models,” notes Bērziņš. “Lynk & Co’s subscription model also appeals to younger drivers who prefer flexibility over ownership.”
When it comes to pre-owned EVs, Tesla holds an unmatchable lead. The Tesla Model S was the most registered used model with 167 units, followed by the Model 3 (139) and Model Y (109). Volkswagen’s ID.4 Pro (83) and Audi’s e-tron 55 (65) completed the top five.
The strong used-Tesla presence suggests that early adopters in Latvia are upgrading or downsizing, flooding the market with relatively young, high-tech EVs. For budget-minded buyers, that means a chance to snag a premium EV at a fraction of its original price—especially with the EKII-2 subsidy applied.
While Latvia is a small market, its EV adoption patterns often mirror those in larger European countries. The rapid growth of Chinese brands in Latvia—and their ability to compete with legacy automakers—echoes trends seen in the US, where BYD has yet to enter but where Chinese automakers are exploring partnerships.
“The US can learn from Latvia’s experience with subsidies: a well-timed, well-funded program can prevent market drops and sustain momentum,” says Bērziņš. “But you also need enough used EV supply to keep prices accessible.”
With the EKII-2 program expected to run through early 2027, Latvia’s EV market is set for continued growth. For now, Chinese brands are proving that they can hold their own—even in a small, subsidy-driven market.
