Georgia’s automotive business has deteriorated sharply following the introduction of new vehicle import and customs rules, according to Elguja Jamagidze, founder and director of Robani Motors & Auto. He said the regulations have dealt a major blow to the sector, while the government’s stated goals of improving the environment and reducing traffic congestion have not been achieved.
Jamagidze told BMG that many individual entrepreneurs and small dealers have been forced to leave the market because they were unable to adapt to the new requirements. He estimates that around 30–40% of people working in the sector have exited the market, significantly reducing the number of local suppliers.
He said Georgian dealers have increasingly been replaced by foreign players, particularly representatives from Central Asian countries, while the share of local businesses at the Rustavi car market has declined. Jamagidze also criticized restrictions on vehicles more than six years old, saying many Georgian consumers cannot afford to keep up with increasingly costly requirements. In response, some local dealers have shifted toward Chinese vehicles and electric cars.
Jamagidze said the regulations have failed to resolve the problems they were intended to address, with traffic congestion and environmental challenges remaining unchanged, particularly in Tbilisi. He suggested that the government consider incentives for hybrid vehicles as well, noting that they can produce 50–60% less emissions. From April 1, 2026, the excise tax was increased to GEL 1.5 per cubic centimeter for vehicles up to six years old and GEL 4.5 per cubic centimeter for vehicles older than six years.
