Azerbaijan Used Car Market 2025: Import Trends, Regulations, and Opportunities

Azerbaijan’s automotive sector has been booming in recent years — and much of that growth is fueled by used car imports. With a relatively limited manufacturing base, the country relies heavily on vehicle imports to meet domestic demand. As a result, its used car market has become one of the most dynamic in the Caucasus region.

Strong Demand Drives Growth

The demand for cars in Azerbaijan continues to rise alongside economic development and improved living standards. Public data shows that as early as 2019, the annual used car transaction volume reached 300,000 units. By 2024, used vehicles accounted for over 80% of all imported cars. Between January and July 2025, Azerbaijan imported 63,401 vehicles, highlighting consistent growth in demand — and presenting a strong opportunity for Chinese car exporters to enter this expanding market.

Political and Economic Context

Azerbaijan is a presidential republic, with Ilham Aliyev serving as the current president. The unicameral National Assembly consists of 125 members elected for five-year terms; the current 7th National Assembly was elected in September 2024, with Sahiba Gafarova as Speaker. Economically, Azerbaijan remains heavily reliant on its oil and gas industry, the backbone of its GDP. In 2024, the country’s GDP reached USD 74.2 billion, marking a 41% year-on-year increase. The nation holds 4 billion tons of proven oil reserves and 2.55 trillion cubic meters of natural gas, making it a key energy producer in the region.

Vehicle Import Regulations

To ensure safety and environmental standards, Azerbaijan enforces the following rules for vehicle imports:

• Only left-hand-drive vehicles are permitted on public roads.

• Tinted windows are prohibited.

• Used cars must be less than 10 years old.

• Vehicles must be equipped with ABS and at least one airbag.

• Must meet Euro IV emissions standards.

Taxation and Incentives

Azerbaijan applies import duties and taxes based on vehicle type and engine displacement:

• Fuel vehicles: Subject to customs duty (15% in 2025), excise tax, and 18% VAT.

• Electric vehicles: Fully exempt from import duties since January 1, 2019, to encourage green mobility.

• Older vehicles: Used cars older than 10 years, or vehicles manufactured more than 4 years ago, are subject to additional recycling (scrap) taxes during the safety inspection stage.

Outlook: A Promising Destination for Chinese Used Cars

With a growing economy, improving infrastructure, and robust consumer appetite for affordable vehicles, Azerbaijan represents an emerging high-potential market for Chinese used car exporters.

Demand for reliable, cost-effective vehicles — especially compliant with Euro IV standards — continues to rise, making now the ideal time for exporters to expand their presence in this market.