Electric Car Market Shows Growth After Pause; Chinese Cars Gain Share
In the first half of this year, the share of electric cars among leased vehicles rose to 7.4%, while used car leasing transactions increased by 14%. Interest in Chinese-made cars is growing rapidly, especially in the EV segment.
According to data from Citadele Leasing, the number of leasing transactions for used cars in Latvia increased by 14% in the first half of 2024 compared to the same period last year. Although new cars still account for the largest share of financed vehicles, the average leasing amount for a new car reached almost 40,000 euros, while for a used car it exceeded 25,000 euros.
Particularly rapid growth is seen in the electric car segment. Their share of all leasing deals rose from 6.8% to 7.4%, while the share of plug-in hybrids decreased from 13% to 11.4%. As noted by Peteris Plaudis, head of Citadele Leasing, even faster growth is expected in the second half of the year, driven by the new EKII support program launched in May. In June alone, the number of EV leasing deals supported by EKII nearly equaled the total in the first four months.
Despite the growing popularity of alternative powertrains, diesel engines still dominate in the used car segment, but petrol car transactions increased by 18% year-on-year.
The share of Chinese-made cars has grown significantly – in H1 they accounted for 23% of all new cars bought via leasing, rising to 31% in June. Plaudis points out that Chinese manufacturers have significantly improved quality and technology while maintaining competitive prices, especially in the EV segment.
The most active leasing buyers are individuals aged 35 to 45, peaking around 40. The most popular brands are Toyota, Volkswagen, and Skoda. In the corporate segment, Toyota accounts for 52% of financed vehicles, while among individuals the competition is more balanced. New car leasing transactions by legal entities increased by 27%, indicating corporate investment in mobility.
