Azerbaijan, Baku – Azerbaijan’s automotive market is undergoing a remarkable transformation, driven by eco-friendly reforms and shifting consumer trends, according to Eyyub Aliyev, Chairman of the Azerbaijan Automobile Dealers Association.

Speaking at an event held at the Baku Expo Center, Aliyev highlighted the impact of 2022 reforms aimed at promoting greener vehicles, which have led to a modest but notable renewal of the country’s aging car fleet, 86% of which is considered outdated.

Gone are the days of spending hours under the sun to sell a car. Now, buyers can complete transactions via their phones. — © Eyyub Aliyev

Aliyev noted a significant market correction, with prices for older vehicles—those over 8 to 10 years old with large engine capacities—dropping by 30-35%. “Previously, car prices were artificially inflated. For instance, a 1990s model could fetch 10,000 manats, which was exorbitant,” he explained. “Today, the market is regulating prices more realistically.”

The chairman also emphasized the rise of digital platforms and direct sales, which have revolutionized the car-buying experience. “Gone are the days of spending hours under the sun to sell a car. Now, buyers can complete transactions via their phones,” Aliyev said, underscoring the convenience of online and direct sales channels.

However, the reforms have not been without challenges. Aliyev pointed out that while incentives and concessions have spurred change, they have also weakened the position of official distributors. A growing trend of “parallel imports”—where individuals import and sell cars from abroad—has further disrupted the market. “This is the reality today,” Aliyev stated. “While it has impacted official distributors, it has also contributed to the overall renewal of our car fleet.”

The evolving dynamics signal a pivotal moment for Azerbaijan’s automotive sector, as it balances modernization with market challenges, paving the way for a more sustainable and accessible future.