Georgia’s auto import and re-export sector, one of the country’s key economic drivers, is facing a severe downturn. In the first four months of 2026, car re-exports dropped by 29% to $537 million, mainly due to sharp declines in Kazakhstan, Kyrgyzstan and Azerbaijan. According to the Auto Importers Association’s head, Aleksandre Noniadze, the crisis has been building for two years, but the April increase in excise taxes on cars older than three or even six years significantly deepened the decline.
Noniadze explains that Georgian dealers began losing competitiveness as early as the pandemic period, when intermediaries from Central Asia entered the market and used aggressive pricing. At the same time, Central Asia is no longer dependent on Georgia: Chinese automakers now supply the region directly, making the Georgian route logistically unnecessary. As a result, Kazakhstan and Kyrgyzstan may themselves become regional distribution hubs, further weakening Georgia’s re-export role.
The excise tax increase, introduced despite two years of industry appeals for support, has further damaged the sector. Noniadze warns that the current 29% decline does not yet reflect the full impact and predicts that by autumn the auto market will be “effectively halved,” with small and medium dealers already cutting activity by up to 60%. This threatens tens of thousands of jobs, given that over 226,000 people work in trade and auto-related services.
As for the future, Noniadze believes the only way to save Georgia’s auto-hub status is diversifying export markets and involving the state directly in opening new avenues in the Middle East and broader Central Asia. Without proactive government strategy, he says, the industry will continue to shrink, Chinese brands won’t restore Georgia’s transit role, and both business and consumers will ultimately face higher long-term costs.
