Georgia’s auto industry faces a serious setback as the government moves to sharply increase excise taxes on vehicles under six years old, following an earlier rise in the cost of clearing older cars. The new rates, justified by officials as environmental measures, are set to take effect on April 1. According to the Association of Auto Importers and Car Owners, the consequences will be severe: up to 40% of importing companies may shut down, 50–60% of dealers could lose their jobs, and the sector’s annual $6 billion turnover may fall by $2.6 billion.
Claiming the government has avoided direct communication with the industry, auto importers took an unusual step on March 17, issuing an open letter addressed not to ministers but to Bidzina Ivanishvili, the founder and honorary chairman of the ruling Georgian Dream party. They asked him to use his authority and “sense of state responsibility” to halt the rushed implementation and launch an open, inclusive process. Their appeal calls for a working group involving the government, independent experts and sector representatives, with regulations based on real environmental impact - such as emission standards and stricter technical inspections - rather than measures that effectively deprive most citizens of choice.
Explaining why they appealed to Ivanishvili despite his lack of an official position, Association Chairman Aleksi Noniazde said he initially opposed the idea but later realized why people believe such a request might matter. “People feel he also has responsibility, and I want to awaken that feeling in him,” he said. “If even one family is left without income because of this decision, all political arguments lose meaning. This hardship, whether we like it or not, will be linked to his name.” Noniazde added that he views defending the sector as his own responsibility: “I am doing my job; he has his responsibility too.”
Noniazde also confirmed that the association tried repeatedly to engage the government, including seeking a direct meeting with Prime Minister Irakli Kobakhidze, but received no response. “Every possible method was used,” he said. “The answer, directly or indirectly, was always the same: the decision will not change.” With dialogue blocked and thousands of jobs at risk, the industry turned to the only avenue it believed remained open - an appeal to the figure widely seen as the country’s ultimate decision-maker.
