Georgia, the small South Caucasus nation, has emerged as a significant hub for the international used car market. The country imports thousands of used vehicles from the United States, many of which have been damaged in accidents and written off by American insurance companies.
These vehicles are then repaired and re-exported to various countries, including Russia, Kazakhstan, Kyrgyzstan, and Armenia. Georgia’s second-largest export by value is used cars, following copper ore.
Caucasus Auto Import (CAI) is one of the largest companies involved in this trade. They source cars from US auctions, import them to Georgia, and then repair them before re-exporting them. CAI’s Deputy Chief Executive, David Gulashvili, emphasises the company’s contribution to the renewal of Georgia’s car fleet, which was previously dominated by Soviet-era vehicles.
The Georgian car market in Rustavi, a city southeast of Tbilisi, offers a vast selection of used cars from various brands, including Mercedes, Porsches, Jaguars, Toyotas, and Teslas. Customers from neighbouring countries like Kazakhstan travel to Georgia to explore the market and purchase vehicles.
Since Russia’s invasion of Ukraine, Georgia has faced restrictions on re-exporting US or European cars to Russia and Belarus. However, Georgian media investigations have revealed that loopholes exist, allowing some vehicles to reach Russia through neighbouring countries like Kazakhstan.
Despite the challenges and restrictions, Georgia’s used car industry continues to thrive. The country’s geographic location, access to European and Central Asian markets, and affordable repair costs make it an attractive destination for importing and exporting used vehicles.
The growing demand for electric and hybrid vehicles is also driving the market. Georgia is importing significant numbers of these vehicles, particularly to Ukraine, where there is a high demand for reliable and efficient transport.
Source: BBC News