Azerbaijan.US
Car prices in Azerbaijan have increased since the start of the year, following the expiration of tax incentives for hybrid vehicles. While buyer activity at car markets remains visible, many visitors now come mainly to check prices rather than make purchases, sellers say.
The sharpest increases have been recorded in the used-car segment. Vehicles that had previously struggled to attract buyers are now back in demand, a shift driven largely by the removal of tax exemptions that had favored hybrid cars since 2022. Those incentives officially ended on January 1, 2026.
For several years, tax breaks made hybrid vehicles – particularly Chinese-made models – a competitive alternative to traditional gasoline cars. With those advantages gone, buyers have increasingly turned back to older vehicles, pushing prices higher as demand grows.
Ramir Shabizade, a long-time cyclist, says winter weather has finally convinced him to look for a car. After spending about an hour at the market, he realized how difficult that decision has become.
“Prices keep changing – up and down,” he said. “I’m looking at a budget of around 25,000 to 26,000 manats, but it’s hard to find something reasonable.”
According to dealers, prices for some models are now 1,000 to 3,000 manats higher than late last year. Sellers point to the end of hybrid tax incentives as the main factor, along with rising customs costs and steady demand. Chinese cars, which saw a surge in popularity last year due to lower prices, have been particularly affected.
Many vehicles entering the Azerbaijani market originate from the United States, either directly or via South Korea. Dealers estimate that prices for such imports have risen by at least 1,000 to 2,000 manats.
Elbrus Bakhshaliyev, a seller specializing in Chinese vehicles, says prices for hybrids have increased, but buyer interest has cooled compared to December.
“There are cars available, but real sales are slower,” he said. “People are waiting to see what happens next.”
Hybrid vehicles up to three years old had been exempt from value-added tax under incentives introduced in 2022. The policy aimed to modernize the country’s vehicle fleet and encourage the use of more environmentally friendly transport. According to official statistics, hybrids accounted for about 40 percent of all car imports last year.
However, analysts note that current price increases are not driven by tax changes alone. China has also tightened export rules, making it harder to ship vehicles without manufacturer warranties. The practice of exporting used cars under the label of new vehicles is gradually being phased out, further pushing prices up.
Experts do not rule out short-term speculative price hikes but expect them to be temporary. Most predict the market will stabilize within one to two months, or by the end of the first quarter.
Until then, cars that once seemed affordable are increasingly becoming objects of comparison rather than actual purchases.
