As a result of the Russian-Ukrainian war, car exports from Georgia to several countries were stopped.
Georgian exporters declare that exports to Moldova and Poland are suspended due to the war.
As of last year, automobile exports from Georgia exceeded USD 456 million, of which USD 248 million accounted for Azerbaijan, which is the main export market for Georgia. Ukraine ranks second among exporting countries (USD 88 million).
According to the head of the Georgian Automobile Importers Association, it is difficult to find an alternative to USD 88 million Ukrainian market on time.
"Even during the pandemic, 30% of small car importers left the market. The market shrank from USD 700 million to USD 456 million. Of this, only 88 million were occupied by Ukraine, which is in second place after Azerbaijan. Now the business has to rely on the Azerbaijan and Kazakhstan markets.
Ukraine takes 20%-share of exports, it is impossible to replace 20%-share in a short period of time, because Azerbaijan will buy the same number of cars as they need, we can say the same on Kazakhstan. It is difficult to find an alternative to USD 88-million market, "- said Aleksandre Noniadze.
Caucasus Autoimport is one of the largest exporters from Georgia to Ukraine. Up to 20% of the company's sales in 2021 has accounted for Ukraine. In particular, last year the company sold about 2,600 cars in Ukraine, but due to the war at this stage exports are completely stopped. According to the head of sales of the company, re-export of cars has stopped not only in Ukraine, but also in Moldova and Poland. The company estimates that total re-exports have already dropped by 25%.
"Apart from Ukraine, the main consumers of the Georgian market are the countries of Eastern Europe and Western Asia. Cars passed through both Poland and Moldova. Demand in our market is still from Azerbaijan, which accounts for 30-35% of exports. Purchases are also made from Kazakhstan. We have negotiations with West Asian countries, but it is not an easy and fast process. We can say that today we have a 25% drop in re-exports," said Aleksandre Vekua.
The head of Autopapa considers replacing the Ukrainian market share of 40% with the Bulgarian market. Evgeni Ustinov speaks about the emergence of certain opportunities in the Polish market as well. He confirms that exports from Georgia have also stopped in the direction of Moldova along with Ukraine.
"Autopapa is the largest car market in the Caucasus and I can say that Moldova, like Ukraine, has stopped buying cars in Georgia because of supply problems. Now we are negotiating with Bulgaria to transport cars from Batumi to Varna. However, interesting opportunities have arisen, for example, in Poland, where Ukrainian citizens are arriving because of the war”, - Evgeni Ustinov said.
According to Ustinov, the price of cars has not changed at this time. It should be noted that along with the decrease in demand from Ukraine, there is a demand from Ukrainians and Russian citizens, who stay in Georgia.
"We already see Russian citizens who want to buy cars. Demand is not decreased, but has been deformed, instead of the demand from Ukraine, there is a demand from foreign citizens who have come to Georgia," said Ustinov.
