Home / Economy / Vehicles Exports from Georgia Rose by 74% – Ukraine is Leader in Georgia’s Vehicle Re-Exports

Vehicles Exports from Georgia Rose by 74% – Ukraine is Leader in Georgia’s Vehicle Re-Exports

After 4-year slowdown, vehicles exports from Georgia has increased. The Commersant was told at Geostat, national statistics service of Georgia, that in January-October 2017 Georgia exported 21 197 vehicles, up 74% year on year. As to revenues, the growth was unimportant. Namely, revenues from re-exports constituted 31mln USD, up 23.7% year on year.

For many years Georgia was number one re-exporter country in the region. A major part of vehicles was exported to Kazakhstan, but after Kazakhstan joined Eurasian Customs Union, Georgia’s vehicle exports to Kazakhstan has almost zeroed. Later, in 2014 Georgian vehicle dealers saw losses after Azerbaijan moved to Euro-4 standard. According to this standard, Azerbaijan banned imports of vehicles manufactured before 2005. As a result, Georgia’s vehicle exports to Azerbaijan shrank.
According to Geostat, in 2013 Georgia exported 703.9mln USD vehicles, in 2014 – 517.7mln USD vehicles, in 2015 – 179.6mln USD vehicles.

As to the past year, this indicator is growing. Namely, according to Geostat, in January-October 2017 the country exported 21 197 vehicles worth 162 883.3 thousand USD, while in the same period of 2016 the country exported 12 159 vehicles worth 131 634.1 thousand USD.

Vehicle importers say that over the past period re-exports volume increased at the expense of Ukrainian market. Re-exports has slightly increased to Azerbaijan and Armenia too, he said.

Giorgi Surguladze, director of Caucasus Auto Import noted that, besides Ukraine, Georgia has also increased exports volume to Russia.

“The markets, where vehicles exports declined, record growing demand again. For example, the demand grows on Azerbaijani market. They mainly accept vehicles manufactured after 2010. Exports has considerably increased to Armenia too, but comparatively older vehicles are exported there. Over the past period we have penetrated Ukrainian market too. This is a rapidly growing market and our re-exports mainly grows thanks to Ukrainian market.

Vehicles are also exported to Russia, but I do not know which channels are used to this end, because Russia is a member of Customs Union and higher taxes are applied for nonmember countries”, Surguladze noted.

Nikoloz Rostiashvili, manager of Erest International, noted that re-exports may have increased at the expense of depreciating vehicles.

“We should compare re-exports growth to revenues. If a vehicle was sold for 10 000 USD in 2016, now it is sold for 3 000 USD. Re-exports may have increased because of depreciating vehicles. I do not think re-exports has preconditioned economic advancement or importers have received huge benefits. I personally have eight organizations and revenues have not increased in any of them at the expense of re-exports. As to the leading markets, re-exports is mainly carried out to Armenia. Over the past 2 months, Ukraine has taken leading position. Azerbaijani market also records growing demand”, Rostiashvili said.