AZE.US
Hybrid cars are becoming more expensive in Azerbaijan, pushing some buyers back toward used vehicles and raising concerns over the renewal of the country’s aging car fleet.
Transport expert Eldaniz Jafarov said the price increase is not limited to Chinese-made cars. According to him, newly imported hybrid vehicles from other countries are also being sold at higher prices.
The main reason, he said, is the end of VAT exemptions previously applied to hybrid vehicles.
“Since the preferential period has ended, hybrid cars are now being offered to buyers with VAT included. This has affected the market. Imports of these vehicles have declined, and domestic sales have also slowed,” Jafarov said.
In recent years, Chinese hybrid and electric vehicles had gained significant ground in Azerbaijan, helped by tax and customs incentives. Brands such as BYD, Changan, Geely, Chery and Haval rapidly expanded their presence in the local market.
However, the situation changed after the VAT incentives for hybrid cars expired on January 1, 2026.
Jafarov said cheaper Chinese-made cars currently available on the market are mostly vehicles without an official manufacturer’s warranty or models produced in previous years, including 2024 and 2025. Newly imported hybrid vehicles, including Chinese models and cars from other countries, are now being offered at higher prices.
The expert said prices are expected to remain stable during the summer season.
“No sharp increase or sharp decline in prices is expected,” he said.
Still, the shift is already affecting buyer behavior. According to Jafarov, some consumers have started choosing used cars again.
He warned that this trend could have a negative impact on efforts to renew Azerbaijan’s car fleet.
“Instead of modernizing the vehicle fleet, unfortunately, we are again seeing signs of aging,” Jafarov said.
He noted that the earlier incentives were designed to encourage the import of newer and more environmentally friendly vehicles. The goal was to reduce harmful emissions, limit air pollution and support the renewal of the country’s car fleet.
Jafarov said the policy had produced visible results over the past four years, with more buyers showing interest in cleaner vehicles and the renewal of the fleet gaining pace.
But after the incentives expired, the market began to change. Hybrid imports declined, new cars became more expensive and demand for used vehicles started to rise again.
AZE.US