RIGA - Since Latvia regained independence in 1991, the number of registered vehicles has doubled, due in large part to an increase in local purchasing power. In recent months, people have flocked to car dealers to buy new vehicles, fearing that after the Baltic states join the European Union automobiles will become more expensive.
The fear is not without basis: At present car prices in Finland are up to 40 percent higher than in Latvia.
According to experts, car prices in Estonia, Latvia and Lithuania are approximately the same. They predict that even after EU accession on May 1 there might be only a slight increase - up to 10 percent - in new car prices at first.
Though it remains uncertain exactly which models will be most affected, car dealers are planning to cope with the changes.
"We will prevent a price hike to continue present business and encourage our future clients - even if we do have to work with less income," said Raimonds Duda, automobile sales manager for M-Motors, the Mazda dealer in Latvia. He added that M-Motors has had stable business and is looking to expand in the future.
Unilever Baltic Ltd. sales agent Andris Hlibovs confirms that the demand for new cars will continue.
"After several years of selling Mazda 323s, we have appraised the quality of Japanese cars and plan to renew our car park with brand-new Mazda3 models," he said.
These dealers may have many new clients in years to come as statistics from the Road Traffic Safety Directorate reveal that the majority of registered road motor vehicles in Latvia are over a decade old.
