Wagonlog

Car and the City

Are prices in Azerbaijan’s car market declining?

Against the background of global turmoil, the fashion for the word Tariffs and pessimistic forecasts, it is surprising to hear about falling prices on the Azerbaijani market. But experts of automobile economy have found a positive and I can’t help but share it with you.

According to the State Customs Committee, 9,868 passenger cars were imported into the country in April 2025, of which 43% or 4,216 were equipped with hybrid engines. This is an impressive jump – 2.8 times more than the same period last year.
Hybrid cars are entering the country at more attractive prices. In addition, the growing number of importers is creating healthy competition that is curbing price hikes in the market.
Official statistics confirm a noticeable decrease in MRSP. If in April last year the average price of one hybrid car imported into the country was $29,272, in the same month of 2025 this figure fell by 28.7% and amounted to $20,875.
A significant factor in the availability of hybrid cars is tax and customs benefits. Until January 1, 2026, the import and sale of hybrid cars with a production date of no more than three years and an engine displacement of no more than 2,500 cubic centimeters are fully exempt from value added tax.
Although we should probably thank Chinese low-priced cars first of all (a decrease in the average price may also mean a shift of buyers’ interest from medium and high segments to low segments).