I think the idea is very good. However I have some concerns about it. For example, how to proceed with vehicles that had a serious accident? There are lots of vehicles in Europe (especially from Lithuania) where one car actually consists of 3 or 2. Also many people do some changes to their cars by themselves, so it would be hard to track such changes. Even if all data about car is recorded to blockchain you cannot put there information about how car was used that is also have a big influence on the car condition. In my opinion, the idea is good for limited number of cases.
Yes, we cannot make tracking for all car usage cases (especially fuel type and quality usage, small fixes on the garage and etc.)
Regarding your case with Lithuania, the same way is in Russia, when you can find cars with renamed VIN number and par cars.
I thought we can track not only car in general, if person is ready to fill all data in database, but also it can allow us track vehicles parts, and what parts were setup on each car.
My vision here is to make a kind of instrument for users, that works in automative indusrty to organize history storage and tracking not only car in general, but vehicle parts, and car owner data.