Price increases observed in the Azerbaijani car market are in the focus of both buyers and sellers. In particular, an increase in value ranging from 1,500 to 3,000 manats is recorded for cars priced up to 30,000 manats. The main reason for this price increase is cited as the rise in customs expenses.
Furthermore, the increasing problems with Chinese cars have directed buyers more towards second-hand cars in the domestic market.
The current situation has led to a re-formation of demand in the market and a sharp increase in interest in certain brands and models. This is accompanied by the emergence of different trends in the prices of both cars in the local market and vehicles imported from abroad.
In a statement to Modern.az on the matter, Eyyub Aliyev, Chairman of the Board of the Azerbaijan Automobile Dealers Association, noted that the reasons for the price increase observed in the market are quite clear. According to him, the expiration of tax and customs concessions applied to electric vehicles and hybrid cars in our country as of January 1 has begun to directly affect car prices.
“In addition, certain restrictions have been applied to cars imported into the country through parallel import. This refers to new rules adopted in China's domestic market. Thus, a car that receives a state registration plate in China, even if it has zero mileage, is now considered a second-hand car, and its export from the country is only permitted after 6 months. Previously, however, cars registered in China but unused, with zero mileage, were brought to Azerbaijan.”
E. Aliyev also drew attention to the existence of various subsidies applied during the export of these cars:
“As a result of the elimination of these subsidies and the strengthening of control, the number of cars brought into the country by individuals has significantly decreased, and this decrease is expected to continue in the near future. Against the backdrop of all these factors, it can be said that price increases are inevitable.
On the other hand, the previous concessions no longer apply to cars imported by official dealers. For example, electric and hybrid cars were previously exempt from VAT and some duties. The expiration of these concessions has directly led to an increase in the price of these cars by the amount of these duties.”
The chairman emphasized that the problems observed with Chinese cars are mainly related to the import of cars produced for China's domestic market by individuals:
“Such cars are often not accepted by official services, difficulties arise in finding spare parts, and service is not provided correctly. This ultimately creates serious problems for users. However, in cars purchased from official dealers, such problems have almost been eliminated compared to previous years. Most dealers have already sufficiently stocked their spare parts warehouses, and service operations are functioning more systematically. In other words, the situation in this regard has significantly improved. As for prices, we observe that second-hand cars are regaining value due to the factors I mentioned.”
He also added that although the price of second-hand cars decreased by 35-40 percent, and sometimes even more, last year, these cars are currently undergoing a process of renewed price increase:
“Although there was a certain decrease in the number of second-hand cars imported from America previously, we now see a renewed increase in interest in these cars. Nevertheless, it would be advisable for the Central Bank to grant certain powers to banks and set the down payment amount for car loans at 10-15 percent.
Just as credit opportunities with a 10-20 percent down payment are available today for electric and hybrid cars, if the same conditions were applied to cars operating with gasoline, diesel, and CNG engines, citizens would not fall victim to various risky markets. In such a case, people would not be forced to buy second-hand cars imported from China, America, or Korea, whose origin and technical condition are questionable.”
Eyyub Aliyev, noting the presence of cars with high demand for taxi operations in the market, also highlighted that these are mainly more affordable and accessible models preferred by the lower-income segment of the population:
“These types of cars were purchased by companies, by individuals, and directly for taxi operations. Specifically, we are talking about certain brands and models. Currently, the vast majority of cars in this category are brought into the country through unofficial channels, i.e., by individuals. This is precisely why significant price increases are observed for them.”
The association chairman noted that BYD has already signed an official agreement in Azerbaijan, and official sales of cars of this brand will begin in our country in the near future:
“Even initial sales campaigns have already been announced. However, the physical import of cars into the country is not yet fully completed, and their delivery is expected in the near future.
During this period, some models of the BYD brand are being brought into the country through unofficial channels. Individuals are taking advantage of the current situation to artificially inflate the prices of these cars. These cars were brought into the country in previous periods, registered in the names of individuals, and have already received state license plates. For this reason, they do not pay additional duties or fees in accordance with the legislation during sale, but despite this, they create artificial price increases in the market.”
He concluded by stating that after the mass supply of cars to the country by the official distributor in the near future, this artificial price increase is expected to be eliminated:
“Individuals will be forced to offer cars at lower prices. This is because official distributors do not apply artificial price increases; price changes are only related to increases by the manufacturer or in official catalog prices,” E. Aliyev noted.
It should be recalled that as of January 1, 2026, the VAT and customs duty concessions applied to hybrid and electric cars imported from abroad have expired.
