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Georgia Turns into Regional Hub for Vehicles Supply

Georgia has turned into a regional hub for vehicles supply, Giorgi Surguladze, head of Caucasus Auto Imports company told the BM.Ge news agency.

Despite the new regulations, automobiles importer companies positively appraise the year of 2017. Raising excise tax on fuel and automobile imports has not reduced sales, Giorgi Surguladze said.

Imports of right-steering vehicles, which excise tax rates were extremely raised, has dropped. In turn, imports of left-steering vehicles has risen, he said.

At the same time, Georgian companies have regained positions on re-exports market in Azerbaijan. Re-exports has hit a historical high in Armenia too.

“Georgia is a regional hub for vehicles supply. Mainly, auction and damaged vehicles are imported and they are repaired and sold. If citizens of Ukraine want to purchase a similar car, they will receive the order in 3-4 days, while it takes 2-3 months from the USA, besides the time for repair and so on. Therefore, they prefer to purchase the product in Georgia in a faster regime”, Giorgi Surguladze noted. 

Caucasus Auto Imports plans to intensify efforts in Ukraine in 2018. The company has already opened a local office and plans to launch advertising campaign.

New regulations have not affected sales, Gia Dvali, manager of Mycar.ge company noted. Japanese vehicles were replaced by American ones. Quantitative sales are the same in Georgia, he added.

GEL exchange rate devaluation hampers imports of new vehicles time to time, but there is nothing alarming anyway, Gia Dvali noted.