Georgia’s automotive sector continues to face a downturn, with both vehicle imports and re-exports declining in the first half of 2026. According to the Auto Importers Association, many dealers have suspended operations amid weaker market conditions.
In January-June, vehicle re-exports totaled $938 million, down by 22.9% year-on-year, while imports fell by 16.7% to $1.6 billion. Association Chairman Aleksi Noniadze said the situation worsened after the government increased customs tariffs nearly sixfold in April for vehicles older than six years.
According to Noniadze, around 60-70% of dealers are currently in a waiting mode and have stopped active trading, particularly those focused on re-exports. He warned that trading volumes could decline further in September and October, affecting not only businesses but also transport companies and overall economic activity.
The association also reports that some banks have become more cautious about financing car dealers. Noniadze said tighter lending decisions could further deepen challenges in the sector, as banks’ risk assessments reflect the deteriorating business environment.
