Georgia’s car re-export business has virtually come to a standstill, according to Irakli Kukhianidze, Director of Carmark. Speaking to BMG’s Business Course, he said regulatory changes, rising fuel prices and a crisis in the US used-car market have severely affected the industry. His company has experienced a 90% decline in dealer sales and a 65% drop in retail sales.
Kukhianidze said Georgia has effectively lost its position as a regional automotive hub, as countries such as Armenia, Azerbaijan, Kazakhstan and Kyrgyzstan are increasingly sourcing used cars directly or have introduced new regulations. He added that higher vehicle import duties and transportation costs have made cars increasingly unaffordable for local consumers. To keep the business operating, Carmark has shifted its focus towards Chinese vehicles, which now account for 70–75% of customer inquiries.
The Georgian Auto Importers Association estimates that the automotive industry's combined losses reached nearly $1 billion in the six months following the increase in vehicle import duties on April 1, 2026, taking into account declining imports and exports. According to the association, trade volumes have fallen by 20% for major logistics operators and 60–70% for small and medium-sized companies. Around 60–70% of dealers have also suspended or scaled back their vehicle trading activities.
According to Geostat, Georgia generated $1.5 billion from vehicle re-exports in the first nine months of 2026, a decline of $475 million, or 24%, year-on-year. Vehicle imports also decreased by 13%, from $3 billion to $2.6 billion.
