Customs Changes and Car Prices: What’s Happening in the Market

AZE.US

Azerbaijan’s decision to cancel several customs exemptions on car imports from January 1, 2026, is beginning to reshape the auto market. The move has increased import costs, particularly affecting vehicles assembled in China, though the broader impact remains uneven.

Market participants say some models that sold for around 25,000 manats last year are now listed closer to 35,000–38,000 manats. However, dealers caution against calling it a sweeping price surge. Demand, they note, remains constrained.

Several sellers report that the more visible shift is not the sticker price itself, but buyer behavior. Interest in used vehicles has strengthened, as consumers look for more predictable costs and proven reliability.

“The focus is clearly on the secondary market,” one dealer said, pointing to steady activity in the segment below 30,000 manats.

Economists argue that while higher customs costs inevitably push prices upward, purchasing power ultimately limits how far sellers can go. In the mass-market category, increases following the removal of exemptions typically range from 1,000 to 2,000 manats, according to market estimates.

Analysts say the key variable remains demand. If household budgets stay tight, significant long-term price escalation is unlikely, even with higher import expenses.

For now, the market appears to be adjusting rather than overheating – with cautious buyers, selective price increases and growing attention to used cars shaping the new balance.