More state aid available for electric car purchase in Latvia

On Tuesday, July 16, the government endorsed a €5 million increase in the funding available to support the purchase of electric cars, including an increase in the amount of support. This will bring the funding available to €15 million.

According to the Ministry of Climate and Energy, the State has supported the purchase of at least 1,815 vehicles, of which the majority (75%) (1,364) have been new electric cars, 305 used cars, and 146 externally charged hybrid cars, for a total program funding of €7.2 million. 

The average purchase price of a new electric car (average base vehicle price excluding VAT and optional extras is €36,302, the average price of a used electric car is €26,869 and the average price of an externally chargeable hybrid car is €41,709.

To provide an amount of support equivalent to the price of the vehicle, the aid is increased from €2,250 to €3,350 for used electric cars and from €2,250 to €4,500 for externally rechargeable hybrid cars. There will also be double aid for the scrapping of one petrol, diesel or gas vehicle by a recycling company. This will be eligible for a €2,000 "bonus".

The changes to the electric car purchase program are not supported by the association "City for People" and the association "Green Freedom", who have issued a negative opinion on the draft regulation approved by the Government.

City for People points out that subsidies for the purchase of electric cars are a very inefficient way to reduce CO2 emissions because there are cheaper ways to do that, the subsidies are insufficient to make a dent in the high price of the electric car, and at some point, the transition to electric cars would happen also without state support as it will be prohibited to market new cars with a diesel or petrol engine in the EU as of 2035.

 

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