According to Estonian Association of Car Dealerships and Service Companies (AMTEL) CEO Meelis Telliskivi, three main factors drove the increase in sales figures in March.

First, rental cars previously used by government agencies and large corporations reached the market. These vehicles can be very attractive to buyers as they have seen little use and are generally in good condition.

Second, rental car companies themselves made larger bulk purchases as they renewed their fleets. Telliskivi declined to specify which companies were involved.

The third factor, according to the AMTEL chief, is the overall market situation and delayed decisions by private consumers. Following the introduction of the car tax, sales figures dropped sharply and since then many ordinary consumers have held off on making purchases.

By now, however, expectations have normalized, said Raido Rosenfeld, head of the Elke Mustakivi and Mustamäe Toyota dealerships.

"By now, people have gotten used to the car tax, they understand how it is calculated and how the mechanisms work," Rosenfeld said, adding that spring is typically a busy period for car dealers.

Rosenfeld noted that car prices continue to rise over time. The addition of the car tax does not offset this increase. In his view, consumers should not wait for the tax to be reversed as additional costs — such as potential carbon taxes on internal combustion engine vehicles — may be introduced across Europe.

This spring, the availability of new models also favors used cars. According to Rosenfeld, there is a relative shortage of new vehicles this year, which is pushing buyers toward lightly used options.

As sales figures have not yet returned to pre-tax levels, Rosenfeld said it is more accurate to speak of a post-tax normalization of the car market.

Both Telliskivi and Rosenfeld said there has been a slight increase in the popularity of electric vehicles. They attribute this to factors such as the war in Iran, which has driven up fuel prices, as well as a greater influx of electric cars as manufacturers have finally been able to meet their promised production volumes.

According to AMTEL data, 1,753 new passenger cars were sold in Estonia in March. Due to the low comparison base from last year, this exceeded the March 2025 figure by 81.5 percent.

In total, more than 4,250 new passenger cars were sold in Estonia in the first quarter.

The motor vehicle tax, also known as the car tax, came into effect in Estonia on January 1 of last year and consists of a one-off registration fee and an annual component. Both depend on the vehicle's emissions, weight and age.

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