AZE.US
Azerbaijan’s car market is showing clear signs of slowdown, with sellers in Baku complaining of weak demand, falling prices for some models and fewer buyers willing to close deals.
At the car market in Badamdar, in Baku’s Sabail district, sellers say activity has dropped noticeably compared with late last year. Prices still depend on brand, model, year of production and condition, but many vehicles are now being offered at lower prices.
One seller said only about 10 cars may leave the market on a given day, and sometimes even fewer. According to sellers, prices for some vehicles have fallen by around 2,000 manats ($1,176) compared with the end of last year.
They blame the slowdown mainly on weaker purchasing power. Buyers still look at cars, but many are no longer ready to pay previous prices. Bargaining has become tougher, and sellers are being forced to make concessions.
One market participant said a car listed at 21,000 manats ($12,353) could be sold to a serious buyer for 20,000 manats ($11,765) or even 19,500 manats ($11,471).
Sellers also point to growing competition from Chinese-made vehicles and a wider range of alternatives on the market. Buyers are comparing options more carefully and are less willing to accept old pricing expectations.
Cars imported from the United States are another source of friction between sellers and buyers. Dealers say customers often look at the original price abroad and ignore the costs of transport, repairs, customs clearance and preparation for resale in Azerbaijan. That can create a gap of 3,000-4,000 manats ($1,765-$2,353) between what buyers expect and what sellers consider a realistic market price.
Experts say the broader numbers confirm the slowdown.
According to official statistics, Azerbaijan imported 21,120 vehicles in January-April 2026, a sharp decline from the same period last year.
Auto expert Deniz Jafarov said several factors are weighing on the market. He said a large number of vehicles entered the country late last year, and many of them remain in stock or with private sellers. As a result, supply has exceeded demand.
Taxi regulations have also affected the market. Limits on the number of vehicles used in taxi fleets have reduced demand for some categories of cars, according to experts.
Another major factor is the suspension, from the start of 2026, of customs and tax benefits for plug-in hybrid and hybrid vehicles. Those vehicles are now sold with value-added tax, which directly affects final prices.
Azerbaijan has also banned imports of cars older than 10 years. In addition, excise taxes have increased for gasoline and diesel vehicles older than 7 years, depending on engine size.
Experts say these three factors have contributed to the decline in vehicle imports.
The drop is especially visible in passenger cars. In the first four months of 2025, Azerbaijan imported 30,814 passenger vehicles. In the same period of 2026, the figure fell to 18,287.
That means passenger car imports dropped by 12,527 vehicles, or 40.7%.
The decline was also seen in cargo vehicles. Azerbaijan imported 2,318 cargo vehicles in January-April 2026, compared with 2,613 in the same period last year.
Market participants hope activity will recover in the coming months. For now, however, Azerbaijan’s car market is in waiting mode: sellers are cutting prices, buyers are bargaining harder, and new import rules have made the old trading model less profitable.
AZE.US