Wagonlog

Car and the City

Tag: tariffs

  • 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).

  • Volvo Cars cutting 3,000 jobs to reduce costs

    Sweden-based Volvo Cars is eliminating 3,000 positions as part of a cost-cutting program as the automotive industry faces challenges from trade tensions and economic uncertainty.

    The company said Monday that around 1,200 of the job reductions would come among workers in Sweden, with another 1,000 positions currently filled by consultants, mostly in Sweden, also slated for elimination.

    The rest of the job losses would be in other global markets. Most of the jobs being cut are office positions.

    “The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” said H?kan Samuelsson, Volvo Cars president and CEO.

    “The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs.”

    The company, owned by China’s Geely, has 42,600 full-time employees.

    Carmakers around the world are facing several headwinds, among them higher costs for raw materials, a diminished European car market, and U.S. President Donald Trump’s imposition of 25% tariffs on imported cars and steel.

    Volvo Cars has its main headquarters and product development offices in Gothenburg, Sweden, and makes cars and SUVs in Belgium, South Carolina and China.

  • Subaru of America increases vehicle prices – second automaker to increase MSRPs this month (after Ford)

    Subaru of America is hiking prices on several models, the company said on Monday, the latest automaker to pass along cost increases to consumers as their expenses rise from the Trump administration’s tariffs.

    Subaru said in a statement that the increases were made in response to “current market conditions,” without citing tariffs or specific price actions.

    “The changes were made to offset increased costs while maintaining a solid value proposition for the customer. Subaru pricing is not based on the country of origin of its products,” the company said in a statement.

    Car company executives have recently shared with investors how much the levies will cost them this year, with some in Detroit saying they were expected to add up to $5 billion. While there has been some relief on duties imposed on foreign auto parts, U.S. President Donald Trump has maintained a 25% tariff on the 8 million vehicles the U.S. imports annually.

    Ford Motor earlier this month raised prices on three models produced in Mexico by as much as $2,000, becoming one of the first major automakers to respond to Trump’s tariffs.

    The Subaru price increases will add between $750 and $2,055 to vehicles depending on the model and trim, according to a notice posted on a dealer website. The price increases are expected to hit vehicles on dealer lots starting in June, according to the notice.

    Subaru imports 45% of its U.S.-sold vehicles, according to 2024 data from research firm S&P Global Mobility. Its affordable Forester model is one of a handful of lower-cost vehicles set to be most affected by tariffs. The SUV is getting a price hike of between $1,075 and $1,600 depending on the trim, the dealer notice said.

    Reuters