AZE.US
Azerbaijan’s automobile market is experiencing a slowdown, particularly in the segment of Chinese-made electric and hybrid vehicles, many of which remain unsold months after arriving in the country.
Dealers say a large number of these cars were imported in October and November 2025, after it became known that value-added tax (VAT) would again be applied to electric and hybrid vehicles starting January 1, 2026.
At the time, importers expected strong demand and hoped to sell the vehicles quickly at higher margins before market conditions changed. However, several months later, many of those cars are still waiting for buyers in showrooms.
Imported ahead of tax changes
According to dealership owner Eldar Yusifov, most of the vehicles brought into the country last year are 2024 and 2025 models.
“Demand for these cars was quite strong last year, especially for BYD models,” he said. “But now interest has dropped significantly, both for BYD and other brands.”
Yusifov noted that cars imported last year are already perceived by some buyers as outdated, which affects their attractiveness in the market.
Service and spare parts concerns
Market participants say another factor discouraging buyers is the limited service infrastructure for some imported electric vehicles.
Potential buyers worry about:
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the availability of spare parts,
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the quality and accessibility of maintenance services,
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and possible delays in repairs.
These concerns make some customers hesitant to purchase unfamiliar brands.
Buyers prefer the latest models
Dealers also say that customers with sufficient budgets increasingly prefer newer model-year vehicles, even if the difference is only one year.
As a result, cars imported several months ago have become harder to sell.
“In some cases we are ready to offer them almost at cost price, but interest remains very low,” Yusifov said.
Market waiting for adjustment
Industry observers say the situation reflects a temporary imbalance between supply and demand. A wave of imports ahead of the VAT change has left dealerships with more vehicles than the market can absorb.
Analysts believe sales could recover if prices fall further or service networks expand, helping build greater consumer confidence in electric vehicles in Azerbaijan.