Electric car rental market in the Baltics is in sharp decline, says service provider

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Traveling by electric car is one of the most prominent examples of how environmentally conscious thinking has taken root in travelers’ everyday habits. However, Alens Baibekovs, CEO of rental service provider Booking Group Corporation, notes that several factors are hindering the broader adoption of this trend in the Baltics.

Wider uptake of electric vehicles, along with investments in renewable energy and charging infrastructure, helps reduce the carbon footprint and supports the development of a more sustainable tourism sector. At the same time, promoting electric car tourism can enhance the Baltic states’ reputation as environmentally friendly destinations, attracting more eco-conscious travelers to the region,” Baibekovs said in a press release.

According to statistics from EconomyBookings.com, demand for electric vehicles began rising in 2023 and has remained relatively stable since. Electric cars are primarily preferred for their lower fuel costs and emissions, smoother driving experience, advanced technology, and the ability to use bus lanes.

However, in the first six months of this year, demand for electric vehicles among travelers in the Baltic states has dropped by half compared to the same period last year.

One possible reason for the decline is the growing preference for SUVs and full-size vehicles, which are often more comfortable and offer more luggage space. We are seeing an upward trend in bookings for these types of vehicles,” Baibekovs said.

International travelers visiting the Baltics also tend to prefer SUVs and economy-class cars, placing electric vehicles lower on their list of choices.

Baibekovs believes that the widespread adoption of electric vehicles in the Baltics is being held back by high upfront investment costs, insufficient charging infrastructure, limited vehicle availability, and concerns over range and charging times.

Although charging networks are being continuously developed, there are still not enough charging points outside capital cities. Many travelers – especially foreigners – are also concerned about whether their bank cards are compatible with specific charging stations,” he explained.

Baibekovs added that renting an electric car is generally more expensive than renting a conventional internal combustion engine vehicle. Insurance costs are also typically higher, as electric vehicles have more expensive repair needs and higher market values.

Looking ahead, Baibekovs believes that the future of electric car preferences in the next 5 to 10 years will depend on how quickly rental companies renew their fleets and how environmentally conscious society becomes overall.

Electric cars will become a reliable and natural choice if investments in infrastructure expansion continue and public awareness of their benefits increases,” he said, adding that a successful transition will require a joint effort from policymakers, businesses, and consumers.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited)

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