AZE.US
Imports of hybrid and electric vehicles to Azerbaijan fell sharply in the first five months of 2026, dropping to roughly half the level recorded during the same period last year.
Experts link the decline mainly to the expiration of tax and customs incentives that had supported demand for environmentally friendly vehicles in recent years.
Another factor is market saturation. Over the past four years, hybrids and electric cars accounted for a significant share of vehicles brought into the country, leaving dealers with enough supply to meet much of the current demand.
Despite the end of the incentives, prices for most electric and hybrid vehicles have not risen sharply. Analysts say large numbers of cars were imported in advance, helping to keep prices relatively stable.
Dealers, however, say price increases have become more noticeable in recent weeks.
Cars priced between 25,000 and 40,000 manats have become around 1,500 to 2,000 manats more expensive, according to market participants.
Experts say the previous incentives played an important role in making cleaner vehicles more affordable and encouraging the renewal of Azerbaijan’s aging car fleet.
Shahin Baghirov, chairman of the State Customs Committee, said consumers imported enough vehicles during the previous incentive period to meet much of the market’s needs.
Although the number of imported vehicles fell by half, customs revenues continued to show positive growth. Payments exceeded 12 million manats during the first five months of the year.
Baghirov said the government may review the issue of new incentives for hybrid and electric vehicles again at the end of the year.
AZE.US