Tegeta Motors entered Azerbaijan market. The company, largest service provider in Georgian auto industry, opened the first branch in Baku. Tegeta Motors has made investment of several millions jointly with local partners.
We see great potential on Azerbaijani market, – Dmitry Gozalishvili, commercial director of the company so explains the entrance in the neighboring country and despite the current stagnant situation, he predicts the success.
“Now, there is the market stagnation due to Azerbaijan’s economic and political crisis, entrance is easy but then there’s expansion,” – said the manager, noting that “Tegeta Motors” has no direct competitors either in the Caucasus or in Central Asia due to the diversified product and service portfolios.
“We have been on the market for 22 years and occupy a large share of the market segments in which we operate. Our share is 90% on the new tire market, while 30-40% on the market of lubricants, batteries, and vehicle /trucks automotive parts. So I do not see much potential for growth in Georgia. That is why we have decided to go abroad and develop business there. Azerbaijan market is 3 times bigger, it is our neighbor and in a very short period of time we are able to supply it with our products and thus it is a competitive advantage. Georgia’s location and transparent customs system enables us to make import and export in Azerbaijan through 1-2 days “, – Dmitry Gozalishvili declared to GBC.
However, smaller branch was opened in Baku at the first stage; it will offer full range of automotive products and services to the local customers. In the next 2-3 years, we plan to expand the chain and build large-format centers. After the success in Azerbaijan, the company is planning to master countries of Central Asian.