AZE.US
Car prices in Azerbaijan may rise again in the near future amid a sharp decline in imports and weaker supply on the domestic market.
According to available figures, about 24,000 passenger cars were imported into Azerbaijan in the first five months of 2026. In the same period last year, the figure stood at 39,000. This means imports fell by roughly 40%.
Economist Rashad Hasanov told Demokrat.az that the decline is linked to two main factors.
The first is the cancellation of import incentives for electric vehicles from January 1. According to Hasanov, customs and tax benefits over the past three years made it possible to offer electric, plug-in hybrid and hybrid vehicles at more affordable prices.
As a result, imports of such vehicles increased significantly, especially over the past two years. In some cases, new cars were even more attractive in price than second-hand vehicles.
However, after the incentives were removed, prices increased, purchasing power weakened and demand on the market declined.
The second factor is the end of the surge in demand that followed changes in taxi regulations. At that time, demand for economical, electric and hybrid cars rose sharply, especially from the taxi sector, pushing imports higher last year.
This year, that effect has largely faded.
Hasanov said the drop in car imports is also slowing the renewal of Azerbaijan’s vehicle fleet. As a result, the average age of cars may increase, creating additional pressure on both the new and used car markets.
The economist warned that if the current trend continues, domestic car prices may rise further in the coming period.
The market is now being affected by two processes at once: the end of incentives for environmentally friendly vehicles and the exhaustion of demand linked to taxi reforms. Against this background, even older used cars may become more expensive due to limited supply.
AZE.US