The program's innovations include providing additional support for multi-child families to buy seven-seater electric cars or externally chargeable hybrids. The planned support for this type of new vehicle will be EUR 9,000, while for a seven-seater used electric car – EUR 4,500. Contact online >>
The program''s innovations include providing additional support for multi-child families to buy seven-seater electric cars or externally chargeable hybrids. The planned support for this type of new vehicle will be EUR 9,000, while for a seven-seater used electric car – EUR 4,500.
As part of the program, KEM plans to increase support from €1,000 to €2,000 for scrapping old vehicles powered by petrol, diesel, or gas. This condition will apply to all residents who intend to purchase an electric or hybrid car by transferring their old internal combustion engine car to a processing company.
The existing program requires a resident to purchase an electric car or hybrid car of his or her choice within six months from the date of scrappingthe old vehicle (after issuing the vehicle liquidation certificate of the processing company). In order to facilitate the purchase of electric cars and hybrid cars, it is planned to set 12 months instead of six months.
The support program, an instrument for auctioning emission allowances, has been available to the public since March 2022. More than 1,550 electric and hybrid cars have been purchased in two years with the funding of this program of EUR 6.3 million. This is about 22% of the total number of electric cars in Latvia.
The incentives and legislations section is updated for beginning of 2024, as of 23rd April 2024.
Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.
Electric vehicles (EVs) are exempt from the registration tax.
If emiting less than 50 g CO2/km, all vehicles, including cars, goods vehicles, buses, and motorcycles, are exempt from payment of the Vehicle Operation Taks (registration tax).
Electric vehicles are permitted to travel along public transport lanes, parking for free in Rīga and Liepāja parking lots, and entering Jūrmala without a fee.
The Latvian government has announced a ten-million-euro subsidy programme for electric cars and plug-in hybrids. The purchase of new electric cars is to be subsidised with 4,500 euros from the beginning of 2022, and that of used electric cars and new plug-in hybrids with 2,250 euros.
The duration of the programme is set for two years, i.e. until the end of 2023 – or until the funds are exhausted. If the old car is scrapped, the subsidy is increased by 1,000 euros, according to the Ministry of Environment and Regional Development (Varam).
However, there are also factors that limit the subsidy: for example, it is a condition that the car is cheaper than 50,000 euros net – there is no gradual subsidy as in Germany. In addition, the minimum holding period of the vehicle is four years.
According to the Minister of Environmental Protection, Arturs Toms Plešs, the subsidy is intended to increase the spread of e-vehicles and thus also provide incentives for more charging stations. “It is clear that we will not replace all cars, but we will give a positive impulse to the market and incentivise municipalities to plan charging stations for electric cars,” Plešs said.
The programme of the Ministry of Environmental Protection has also been criticised, for example by the Bank of Latvia. A spokesperson stated that they would like to see a more strategic approach, such as whether the emission reductions calculated for the programme are the most effective way to save CO2.
lsm.lv, varam.gov.lv (in Latvian)
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 extrasis €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.
What is an electric vehicle?It is a vehicle that uses electricity stored in the battery instead of conventional fuels (petrol, diesel or gas).Vehicles which in addition to electric engine have an internal combustion engine are called plug-in hybrid electric vehicles.Electric vehicles do not cause air pollution. Plug-in hybrid electric vehicles do cause pollution, although less than conventional vehicles nstruction of an electric vehicle is very simple – on average it consists of 450 fewer moving parts than conventional cars.
How to drive an electric vehicle?Driving an electric vehicle is similar to driving a conventional car equipped with an automatic gearbox. However, the electric motor operates so quietly that it can hardly be heard when driving slowly fort, manoeuvrability, safety and durability of electric vehicles is equal to that of conventional cars of the corresponding class.Electric cars are able to accelerate very quickly: the current drag race speed record is 0.4 km in 8.8 seconds (average speed 165 km/h).
Why choose electric vehicle?Electric vehicles reduce air pollution and traffic noise in urban areas. One petrol engine car produces an average of 4-5 tons of CO2 emissions per year.Operating costs of electric vehicles are lower than those of conventional cars.Electric vehicles are very efficient, with energy efficiency ratio up to 80%. For conventional cars, this figure is only 15-40%.Electric cars are as powerful as conventional cars, but due to smaller size of electric vehicles their manoeuvrability in heavy traffic is better ers of electric vehicles are offered various incentives, such as tax exemptions, free parking, rights to use public transport lanes and other.
Interesting factsThe first electric cars were created back in the early 19th century.The biggest number of electric vehicles has been sold in Japan. It is followed by the US, China, France and Norway.Latvian built OSCar eO is the world’s first electric car, which has completed all three distances of Dakar Rally. In 2012 Andris Dambis and Maris Saukans used it to travel 8,400 km through Argentina, Chile and Peru June 2015 rally team led by Andris Dambis driving Latvian built electric sports car eO PP03 won the “Pikes Peak International Hill Climb" competition, setting a new world record of the electric cars category.
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