New car registrations rose by over 40% YoY in Latvia and Lithuania in Q3, while in Estonia they fell by more than 40%.
An analysis of data from the vehicle registration agencies of Lithuania (Regitra), Latvia (CSDD) and Estonia (Transport Administration) showed that new passenger car registrations in the Baltic States rose by 16.7% in the third quarter of 2025, reaching a total of 22,527 vehicles.
“Despite the sharp drop in registrations in Estonia due to tax changes, the overall result is still positive thanks to strong growth in the other two Baltic countries,” noted AV Automotive Research/AutoTyrimai.
Lithuania saw a 46.4% increase in new car registrations, with 11,646 vehicles registered, while Latvia posted a similarly strong 45.6% rise, with 7,020 vehicles registered compared to the same period last year. In contrast, Estonia saw its third consecutive quarterly decline, with registrations down by 40.8%, to 3,861 new cars, a drop attributed to the introduction of a motor vehicle tax that came into force on January 1, 2025, according to LSM.
Lithuania accounted for 51.7% of all new car sales in the Baltics, followed by Latvia with 31.2% and Estonia with 17.1%.
The best-selling car brands in the region were Toyota (4,184 units), Skoda (3,387), Volkswagen (2,944), Renault (1,192) and Kia (1,117).
In Lithuania, the top three best-selling new car models were the Skoda Octavia (644 units), Volkswagen T-Roc (582) and Toyota RAV4 (578).
In Latvia, the most popular models were the Toyota Yaris Cross (302), Skoda Kodiaq (286) and Toyota RAV4 (261).
In Estonia, the top three models registered were the Skoda Octavia (189), Kia Sportage (182) and Toyota RAV4 (150).
Estonia introduced a motor vehicle tax from January 1, where brand new vehicles and those registered to a different owner for the first time after the entry into force of the tax were subject to a registration fee, while all registered vehicles were also subject to an annual tax calculated based on emissions, weight and vehicle age.
This led to a car-buying boom in late 2024, where sales grew by more than 40%, as people raced to replace their cars before the new tax. Conversely, sales fell sharply once the tax was introduced this year and haven’t bounced back in the conditions of a cost of living crisis and inconsistent government messaging regarding the fate of the tax – exemptions and whether it might be abolished in the coming years. (ERR)