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30–40% of Auto Importers Will Likely Leave the Market - Industry Warns

ნონიაძე
Natiko Taktakishvili
17.02.26 11:30
162

Georgia’s auto importers warn that planned restrictions on vehicle imports could significantly weaken the country’s role as a regional car hub and trigger large-scale market contractions. According to industry representatives, the new regulations may push 30–40% of import companies out of the market, while 50–60% of dealers could be forced to reduce staff. They argue that the changes would undermine both economic activity and social stability, as many families depend on income from this sector.

Importers also predict that reduced supply will push car prices upward, not only for new vehicles but also for used and high-mileage models. The anticipated price increases would raise logistics costs and, in turn, the cost of goods across multiple industries, contributing to inflationary pressure. Businesses argue that importing chilled beef already shows how traders often prefer ready-to-sell products over domestic processing; similarly, more expensive vehicle operations will raise transport expenses and affect nearly every sector of the economy.

Industry leaders emphasize that the auto sector is already facing global shifts, especially with the rapid expansion of Chinese car manufacturers. Although Georgia currently serves as a transit hub for Western vehicles destined for Central Asia, the rise of Chinese automotive exports could disrupt this model. The Auto Importers Association had even explored the possibility of Georgia becoming a hub for Chinese cars moving toward Europe, but technical and regulatory mismatches, mainly European safety and compliance standards, make such a scenario unlikely for now.

Aleksi Noniaze of the Auto Importers Association says these combined factors could create long-term shortages in the vehicle fleet and limit access to cars for both businesses and consumers. Importers are calling on the government to reconsider the planned regulations and engage in deeper consultation with the sector to avoid what they describe as significant economic and social risks.

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