AZE.US
Early signs of price increases are appearing on Azerbaijan’s car market, as rising logistics costs and higher global commodity prices linked to tensions in the Middle East begin to affect vehicle imports.
Some vehicles in Azerbaijan have started to become more expensive, as regional geopolitical tensions begin to ripple through the country’s automotive market.
According to Vugar Oruj, chairman of the Azerbaijan Society of Appraisers (AQC), developments in the Middle East conflict are already having indirect economic effects, including on Azerbaijan’s vehicle market.
The expert noted that the war has pushed up prices for oil, gold and other strategic commodities, increasing logistics and transportation costs. These factors are gradually feeding into the price of imported cars.
“At the moment the increase cannot be described as sharp, but certain changes are already noticeable,” Oruj said. “In particular, we are seeing slight price increases in vehicles imported from Dubai.”
He added that in the early stage, depending on the model, prices could rise by 3,000 to 5,000 manats, which roughly corresponds to an increase of 2-7 percent.
If the conflict proves short-lived, major volatility in the market is unlikely, he said. However, if tensions continue and energy prices keep climbing, the impact on car imports and retail prices in Azerbaijan could become more significant.
For now, experts say the primary driver behind the price increases is the rise in logistics and transit costs. The full effect of higher oil prices may become more visible in the market over time.