Latvia Extends Electric Vehicle Purchase Aid Programme Until End of 2025

Government Pushes for Broader EV Adoption

Latvia has announced an extension of its electric vehicle (EV) purchase aid programme through December 31, 2025, as part of its ongoing efforts to accelerate the shift toward cleaner transportation. The programme, first introduced to boost EV uptake, provides financial incentives for individuals and businesses purchasing new electric vehicles.

Lower Price Cap to Promote Inclusivity

As part of the extension, the government has reduced the maximum eligible vehicle price from €75,000 to €45,000. The move is intended to focus support on more affordable EV models, ensuring that the incentives benefit a wider segment of the population and promote more inclusive adoption.

According to the Ministry of Climate and Energy, the change reflects both market trends and environmental priorities. “We want to ensure that this programme supports not just luxury EV buyers, but everyday drivers making the transition to sustainable transport,” a spokesperson said.

Incentives for Both New Purchases and Trade-Ins

Under the aid scheme, eligible buyers can receive grants for purchasing fully electric vehicles, with additional bonuses for scrapping old combustion-engine cars. The programme also applies to small businesses and self-employed individuals, expanding its reach beyond private households.

Aligning with EU Green Goals

Latvia’s decision to prolong the subsidy programme aligns with broader European Union climate targets, including the goal of phasing out internal combustion engine vehicles by 2035. As of early 2025, EV sales in Latvia remain below the EU average, but government support is seen as key to closing the gap.

Environmental groups have welcomed the extension but emphasized the need for further investments in charging infrastructure and grid readiness to ensure the long-term success of EV adoption.

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