AZE.US
Azerbaijan’s car market is changing direction: imports are falling, but prices continue to rise.
More than 123,000 vehicles were imported into Azerbaijan last year. Early indicators for this year show that imports have dropped by roughly one-third compared with the same period of 2025. Market participants link the decline mainly to the end of incentives for hybrid and environmentally friendly vehicles, which had previously made that segment especially attractive.
The shift is particularly visible in cars imported from China. Until the end of last year, demand for new Chinese hybrid and electric vehicles was strong. After the incentives expired, final prices rose, while changes in customs and tax costs also affected both sellers and buyers.
But the fall in imports has not pushed prices down.
According to the Azerbaijan Appraisers Chamber, the average market price of a car in Azerbaijan reached 30,480 manats in April. That was 9.2% higher than in December 2025 and 1.9% higher than in March 2026. The overall car market index also rose by 5.8% compared with December and by 1.3% compared with March.
The increase is especially clear in the used-car segment. The used-car index reached 108.2 points, up 8.2% from December and 2.1% from March. New cars also became more expensive, but the rise was weaker: 3.5% compared with December and 0.8% compared with March.
As a result, buyers are increasingly looking for more affordable options. Interest in used cars is growing not only among hybrid buyers, but also among those considering gasoline and diesel vehicles.
That change is already visible in market structure. In April, used cars accounted for 72% of the market, while new cars made up 28%. At the same time, the share of hybrid and electric vehicles rose from 5% in December to 9.5% in April, while the share of diesel vehicles fell from 19% to 16%.
Importers are also shifting their attention again toward U.S. auctions, South Korea and Europe. The Chinese direction no longer looks as dominant as it did during the incentive period. After prices for Chinese cars rose by around 15%, some buyers and entrepreneurs began looking for alternatives.
SUVs and crossovers have become one of the most expensive segments. Their average market price reached 39,100 manats in April, up 11.1% from December. Economy-class cars rose by 10%, mid-range vehicles by 7.6%, and premium cars by 4.1%.
The pressure is also visible in ordinary listings. Older Toyota Prius models from 2007–2008 are often offered at around 10,000 to 13,000 manats. A 2013 Prius can already reach 17,000 to 21,000 manats, while 2016 models are often listed at around 22,000 to 23,000 manats. New or nearly new LADA Niva models frequently cost more than 20,000 manats, even though many buyers still think of the model as a simple working vehicle.
Credit is becoming another sign of pressure in the market. According to the same data, the share of car sales made through credit rose to 48% in April, up 8 percentage points from December and 1 point from March. In practice, almost every second car is now sold with some form of credit mechanism.
Experts say the market is not collapsing, but being reshaped. Demand remains, yet buyers are more cautious and increasingly focused on price, condition and future maintenance costs.
If the current trend continues, Azerbaijan’s car imports may end the year 15% to 20% below last year’s level. The paradox is that fewer cars are being imported, sellers complain about weaker demand, but good cars are not becoming cheaper. The market is becoming more used, more credit-driven and more expensive at the same time.
AZE.US