The average age of vehicles in Latvia and Estonia keeps shrinking, growing in Lithuania

BTA Insurance Company SE (hereinafter – BTA) has summarized data for the last five years for all three Baltic States on vehicles, the drivers of which have obtained BTA MTPL insurance policies. Statistics suggests that the oldest vehicles are in Lithuania – the average age of vehicles is 16.1 years, whereas the newest vehicles are in Estonia, where the average age of vehicles is 12.2 years. In Latvia, the average age of vehicles insured by BTA is 13.8 years. The most popular vehicle brands in all three Baltic States are Volkswagen and Audi.

Changes in the average age of vehicles are closely linked to the overall economic situation in the country, national tax policy, as well as, naturally, citizens’ individual opinion and assumptions about a vehicle matching their needs, expectations and affordability. Having analysed the average vehicle age tendencies for the period of last five years, BTA has come to a conclusion that the situation differs among the Baltic States. Although the average age of vehicles in Latvia and Estonia has slightly decreased since 2012, it still is rather high. According to BTA data, in 2014 the average age of vehicles in Latvia was 13.8 years, and in Estonia – 12.2 years. The oldest vehicles are in Lithuania, namely, the average age of vehicles is 16.1 years, moreover, the age of registered vehicles in Lithuania keeps growing year to year since 2010. This tendency is due to the fact that renovation and repairs of used vehicles in Lithuania is very widespread, including construction of the so called “Frankenstein-cars” by assembling parts of various vehicles. It also should be noted that Lithuania has become a vehicle transit country – damaged, used vehicles keep flowing to Lithuania from Western Europe, United States of America, Scandinavia, they are repaired there and then sold further in Eastern Europe, although, part of these vehicles remains also in Lithuania.

In the Baltic States women drive newer cars than men 
According to data collected by BTA, in all three Baltic States, women drive slightly newer cars than men do. In 2014, the average age of vehicles in Latvia driven by women, was 13.2 years, while men rode cars, the average age of which was a year larger – 14.4 years. Women in Lithuania drove vehicles of the average age of 15.5 years, and men – 16.7 year-old vehicles, while in Estonia women drove on average 11.8 year-old vehicles, and men – 12.6 year-old vehicles.

Velta Dzene, Auto insurance product manager at BTA Insurance Company SE: 
Indisputable that the average age of cars in a country is closely related to many economic indicators characterizing the country, and it includes the purchasing capacity of its inhabitants. The lower the purchasing capacity of inhabitants in a country, the more likely the average age of vehicles is to be higher. Although, it should be noted that inhabitants of the Baltic States not infrequently choose cars by giving preference to older, but larger and more powerful cars rather than newer and more modestly equipped ones, even in cases, when both vehicles are nearly the same price-wise. The fact that the average age of cars in Latvia and Estonia gradually keeps shrinking is to our joy as insurers, and naturally so, as it indicates that more vehicles that are younger and thereby safer populate our roads.”

Volkswagens and Audis – most popular in the Baltic States 
Collecting data about BTA-insured vehicles in Latvia, Lithuania and Estonia, BTA concluded that the most popular vehicle brands with drivers of all three Baltic States are Volkswagen and Audi, invariably so since 2010. The third by popularity in Latvia and Lithuania invariably for four years is Opel, in Estonia occupying but the eight spot on the list of most popular car brands. The third most popular car brand in Estonia is BMW, which in 2014 in Latvia ranked fourth, and in Lithuania just eighth.

“As we see, the Top 3 in the Baltic States are European car brands. They have won the trust of inhabitants of the Baltic region as long as since the countries regained their independence, as transportation costs of these cars to the Baltic States are lower than those shipped from Japan, Korea or the US. Likewise, the spare parts for these vehicles are accessible faster and easier, and garage staff in the Baltic States are well acquainted with technical peculiarities of these vehicles. The choice of individuals when purchasing a new car undeniably is decided by the success of marketing activities of the official dealers of car manufacturers, targeted to boost the sales of a particular car brand. Although the presence of Japanese and Korean made cars on the market is on the rise within the past 10 – 15 years, they are hardly likely to significantly compete, in a couple of years ahead, with the well-established and dominant trust to European car brands among the Baltic people”, believes Velta Dzene.

The largest rise in popularity during the last five years in Latvia have seen Volvos, climbing from being eight in 2010 to five in 2014, while in Lithuania – Toyotas, climbing from the 10th spot in 2010 to the 6th place in 2014. Toyotas have gained popularity during last five years in Estonia as well, with being the seventh on the list of popularity in Estonia, climbing to the fifth in 2014.

According to BTA, the car brand choice in the Baltic States by gender profile reveals that the most popular brand among men and women in Latvia and Lithuania is Volkswagen. Men in Estonia also favour Volkswagens, while Estonian ladies more prefer BMWs.

The choice of young people in Latvia and Estonia - BMW, in Lithuania – Volkswagen 
As the statistics for the last years suggests that young people aged 18 to 25 are in the category of the most dangerous drivers, BTA run a summary of data – what vehicles in the Baltic States do young people prefer. According to BTA data, young people in all three Baltic States tend to ride older cars, relative to the average age in the country, and in the majority of cases they prefer fast, sporty and powerful cars.

The most popular brand in Latvia and Estonia among youngsters is BMW, while in Lithuania it is Volkswagen, which also is the most popular in the country in general. BMWs in Lithuania are just fourth on the list of popularity among young people.

Information prepared by: 
Agnese Grīnberga 
Public Relations Manager 
BTA Insurance Company SE 
E-mail: agnese.grinberga@bta.lv  
Telephone: +371 67025661, mobile phone: +371 27828796