09.Oct .2020 11:19

How does COVID-19 affect auto imports?

How does COVID-19 affect auto imports?
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Demand for imported cars in Georgia has decreased. The reason is the sharp depreciation of GEL against USD and the unpredictable economic situation caused by "COVID-19". Part of the private dealers suspend operating due to the increased price of cars and reduced consumer demand.

It is also noteworthy that prices for auto parts, including branded or non-branded stores, are increased by 20%. The employees of the sector note, that it has another impact on reduced consumer demand.

“I have been importing cars for years, but after the pandemic the situation changed and I stopped the auto import business. The reason is depreciation of lari and consumers’ reduced demand. However, demand is declined for auto oils, as cost of this product also increased by 20%. Price for all types of branded oil increased and amount to 20-22 GEL per litre instead of 15 GEL”, Kote Bochorishvili, a private dealer told BM.GE.

According to the dealers, in the wake of lari depreciation, prices are increased for all types of imported products day by day. The list of these products also includes used cars, which are mainly imported from Japan, Germany and the United States.