Azerbaijan cancels import tax on electric vehicles! New energy exports usher in new opportunities!

Market demand
Azerbaijan cancels import tax on electric vehicles! New energy exports usher in new opportunities! Most of Azerbaijan’s cars are imported from outside, and the number of imports has been growing. The country’s manufacturing base is relatively weak, and it has not yet established a practical automobile production industry system. The market’s dependence on imported cars is very obvious.
With the continuous economic progress and the gradual improvement of people’s quality of life, Azerbaijan’s demand for cars has gradually increased, especially in the field of mid-to-high-end cars and new energy vehicles. There is still considerable room for growth. For example, Chinese-branded electric vehicles were designated as the only VIP special car for the Climate Change Conference held in Azerbaijan in 2024. This action clearly demonstrated the local market’s recognition and expectations for new energy vehicles.
Policy environment
Azerbaijan has certain policy regulations on car imports. Both left-hand and right-hand drive cars can be imported, but only left-hand drive cars are allowed to drive on the road. From April 28, 2023, the age of imported used cars shall not exceed 10 years. At this time, cars imported into Azerbaijan must be equipped with ABS system and at least one airbag, and the emission standards of all imported used cars must reach Euro 4 or above.
In order to promote the development of electric vehicles, Azerbaijan has abolished the tax on imported electric vehicles since January 1, 2019, which provides favorable policy support for the export of Chinese new energy vehicles.
III. Competition
In the Azerbaijan market, American, German and Japanese brands are its main used car import brands, which have a certain reputation and customer base in the local market. However, Chinese cars are gradually occupying a place in the Azerbaijan market with their own advantages
In 2023, Azerbaijan imported about 7,700 Chinese cars, and the market share of Chinese cars in the local market gradually increased. Chinese cars are loved by more and more Azerbaijani consumers for their high cost performance, significant energy saving and environmental protection, and extremely rich configuration.
IV. Market Opportunities
As early as 2010, Lifan Naz Factory in Nakhchivan, Azerbaijan, began production, using Chinese parts to manufacture cars; in 2022, ZTE Auto began to assemble pickup trucks and electric vehicles in this factory, and the two sides have accumulated valuable experience in the field of automobile production cooperation.
In March 2024, Ganja Automobile Manufacturing Plant signed an assembly cooperation agreement with two Chinese automobile manufacturing companies, “Lifan” and “Changan”, and plans to start assembling and producing Changan’s 1-ton-3.5-ton medium-duty trucks and 4 minibuses, as well as “Lifan 520” personal cars within the year. In the future, there is hope for further cooperation in parts production.
V. Development Trends
With the upgrading of China-Azerbaijan relations to a comprehensive strategic partnership, the cooperation between the two countries in the economic and trade fields will continue and deepen, which has created more favorable political and economic conditions for the export of Chinese cars to Azerbaijan.
Azerbaijan cancels import tax on electric vehicles! New energy exports usher in new opportunities! As an important participant in the “Belt and Road” initiative, Azerbaijan’s cooperation with China in many areas such as transportation infrastructure has been continuously strengthened, which will further promote the export of Chinese automobiles and at the same time be conducive to the expansion of the local market in China.