As of the first 9 months of 2020, auto import is 31% down in Georgia, while export – by 37%.
According to the research by TBC Capital, auto exports from Georgia have increased only to Azerbaijan in the last four years, while decreased in Armenia and Ukraine.
Tornike Kordzaia, Head of Research at TBC CAPITAL considered auto industry market of Georgia and noted, that other reasons cause decline in auto sales along the pandemic.
"Pandemic had a big impact on export markets, but closure of the Armenian market had the stronger blow for Georgian exporters comparing to the pandemic, as the decrease made up 97% in 9 months.
We have lost one of the most important export markets and the thing is how we will replace this market.
The fact that the Armenian market is no longer accessible also had an impact on imports. However, imports are declining from our major import markets: the US, Japan, Germany and Turkey, the decline is 35%. An additional market must be found to replace the key market of the industry.
In 2021, the effect of the Armenian market is not expected to be completely eliminated, 2022 will be weaker than 2019," Kordzaia said.
