Car re-exports fell 35.1%

Car re-exports fell 35.1%

access_time2021-04-19 16:13:43

Cars re-export saw a significant decline of 52.2% from $133 million to $97 million. If in January-February 2020, cars worth $ 105 million were sold from Georgia, in the same period of 2021 – exports worth $ 50 million.

Excluding service exports, last year this sector saw the biggest $ 330 million loss.

Demand for cars fell sharply in 2020 as a result of the deteriorating economic situation in the region, the process is still ongoing. Georgian car importers that don't make a tetri in profit  ask the government  to postpone the customs clearance period, because after paying the customs clearance, selling it abroad loses its economic meaning. The government decided to extend the customs clearance period for imported cars until May 12020.

Re-export of passenger cars as a business has been in operation since 2005, in one year the market grew by 373% to $ 18 million. It surpassed $ 100 million for the first time in 2008 and reached $ 704 million in 2013. Azerbaijan’s  ban on imports of cars produced before 2006, which coincided with the economic problems caused by the fall in oil prices in this country, has sharply reduced the demand for cars imported from Georgia. Meanwhile  Armenia joined the Eurasian Union, which increased the price of non-Russian cars, resulting in a 4-fold reduction in turnover in 2015-2016 to $ 171 million. The market has been revived since 2017, car re-exports reached $ 733 million in 2019 and declined to $ 404 million in 2020.


Similar News