06.06.2024
While electric cars have so far been seen as a choice of the more affluent, then more favourable financing conditions and a wider selection of electric vehicles in the lower price bracket could make them more popular with everyone.
According to statistics from the Transport Administration, a total of 5,991 electric cars were registered in Estonia as at the beginning of this year, which is only about 1% of all vehicles registered in Estonia. Of all new cars sold in Estonia last year, 6% were indeed fully electric, but this is significantly less than in most of our neighbouring countries. In Latvia, for example, the figure was 9%, reaching 40% in Sweden, and 82% in Norway.
According to the Estonian Association of Car Dealers and Service Companies (AMTEL), the demand for electric vehicles in Estonia has so far been significantly lower than the European average, where the sales of electric vehicles account for 13–15% of new passenger car sales from month to month. In a year-on-year comparison of the first four months of 2024 and 2023, we can observe an 11.8% increase, but further growth will require an increasing number of electric vehicles in the medium and lower price bracket to enter the market, including the aftermarket.
Erki Link, Head of LHV Leasing, also said that while electric cars have so far been the choice of wealthier people, improving their accessibility could boost their popularity in Estonia.
‘In our day-to-day work, we can see that electric car buyers generally had higher salaries in the past, while a more diverse cross section of people are now considering this option. Last year, the average price of an electric car purchased with the support of our financing was EUR 49,000, but today, you can find much cheaper options among both new and used electric cars. It is important to support people in making such choices, which is why we have recently made our financing terms more favourable,’ said Link.
Last year, the most popular electric cars among LHV’s private clients were the Tesla Model 3, Nissan Leaf, Audi E-tron, BMW i3, and Porsche Taycan. According to AMTEL, the most popular electric car brands in the first four months of this year were Tesla, Audi, Toyota, and Hyundai.
Within the framework of cooperation between LHV and EIF, a leasing offer of 1.49% + 6 months’ Euribor is available for individuals and companies for the purchase of fully electric vehicles, and for companies for the purchase of hybrid vehicles with CO₂ emissions of up to 50 g/km. The offer extends to vehicles up to two (2) years old purchased for normal use.
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