Market Insights Mobility Electric Vehicles

Plug-in Hybrid Electric Vehicles - Latvia

Latvia

In 2024, it is projected that the revenue in the Plug-in Hybrid Electric Vehicles market in Latvia will reach US$41.2m.
Looking ahead, there is an expected annual growth rate of 20.01% (CAGR 2024-2029), which will result in a projected market volume of US$102.5m by 2029.
By that time, it is anticipated that the unit sales in the Plug-in Hybrid Electric Vehicles market will reach 1,127.00vehicles.
The volume weighted average price of the Plug-in Hybrid Electric Vehicles market in 2024 is expected to be US$91.1k.
From an international perspective, it is evident that China will generate the most revenue in the segment, with US$165,600m in 2024.
Despite being a small market, the adoption of plug-in hybrid electric vehicles in Latvia is steadily increasing due to government incentives and growing environmental consciousness among consumers.

Key regions: China, Norway, United Kingdom, Netherlands, France

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Analyst Opinion

The Plug-in Hybrid Electric Vehicles market in Latvia has been experiencing significant growth in recent years.

Customer preferences: Latvian customers are increasingly choosing Plug-in Hybrid Electric Vehicles (PHEVs) due to their environmental benefits and cost savings. PHEVs offer a more sustainable transportation option, as they produce lower emissions compared to traditional gasoline or diesel vehicles. Additionally, PHEVs offer the flexibility of running on both electricity and gasoline, which provides convenience for longer trips or when charging infrastructure is limited. The cost savings associated with PHEVs, such as lower fuel consumption and potential government incentives, are also appealing to Latvian customers.

Trends in the market: One of the key trends in the Plug-in Hybrid Electric Vehicles market in Latvia is the increasing availability of charging infrastructure. As the government and private companies invest in expanding the charging network, it becomes more convenient for customers to own and operate PHEVs. This trend is driven by the growing awareness of the importance of sustainable transportation and the need to reduce carbon emissions. The availability of charging infrastructure also addresses one of the main concerns of potential PHEV buyers – range anxiety. Another trend in the market is the introduction of new and improved PHEV models by automakers. As technology advances, PHEVs are becoming more efficient and offering longer electric range. This makes them a more attractive option for customers who want to reduce their carbon footprint without compromising on performance or convenience. The increasing variety of PHEV models available in the Latvian market gives customers more options to choose from, catering to different preferences and needs.

Local special circumstances: The Plug-in Hybrid Electric Vehicles market in Latvia is influenced by several local special circumstances. One of these is the government's commitment to reducing greenhouse gas emissions and promoting sustainable transportation. The Latvian government has implemented various incentives and subsidies to encourage the adoption of electric and hybrid vehicles, including PHEVs. These incentives include tax breaks, reduced registration fees, and financial support for purchasing and installing charging infrastructure. Such initiatives have played a significant role in driving the growth of the PHEV market in Latvia.

Underlying macroeconomic factors: The growth of the Plug-in Hybrid Electric Vehicles market in Latvia is also supported by favorable macroeconomic factors. The country's stable economy and increasing disposable income levels have made PHEVs more affordable for a larger segment of the population. Additionally, the rising fuel prices and the desire to reduce dependence on imported fossil fuels have further incentivized customers to consider PHEVs as a cost-effective and sustainable alternative. The availability of financing options and leasing programs has also made it easier for customers to purchase PHEVs. In conclusion, the Plug-in Hybrid Electric Vehicles market in Latvia is experiencing growth due to customer preferences for sustainable transportation, the increasing availability of charging infrastructure, the introduction of new and improved PHEV models, the government's commitment to reducing emissions, and favorable macroeconomic factors. These factors are driving the adoption of PHEVs in Latvia and shaping the future of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).