Georgia risks losing its position as a regional auto hub, Auto Importers and Car Owners Association head Aleksi Noniadze told BMG. He said legislative changes, higher customs tariffs, geopolitical factors and global competition have severely affected the auto import and re-export sectors.
According to Noniadze, more than half of companies in the sector are operating at reduced capacity, while 60–70% of dealers have left the market. Higher vehicle prices at US auctions, logistical difficulties and container shortages linked to the situation in the Red Sea have further intensified the challenges.
Noniadze said efforts to diversify Georgia’s import and export markets have not produced the expected results. He warned that without joint measures to reduce risks, the country could ultimately lose the auto-hub function it has built over the years.
He added that Georgian companies are also struggling to compete with Chinese vehicles. Attempts to import Chinese cars for re-export to Eastern Europe have been limited, as Chinese manufacturers can sell directly in those markets. According to Geostat, vehicle imports fell by 12.5% year-on-year to $1.347 billion in January-August, while vehicle re-exports declined by 22%.
