As of March 25, the import of rare vehicles into the country has been exempted from VAT, excise duty, and customs duties.
It is interesting to see how the price dynamics in the car market have changed against the backdrop of these changes. Currently, in which types of cars is the price increase most observed?
In addition, how will the tax incentives applied to the import of rare cars affect the market?
In his statement to Modern.az on the topic, the Chairman of the Board of the Azerbaijan Automobile Dealers Association, Eyyub Aliyev, stated that the cancellation of incentives applied to environmentally friendly vehicles from January 1, 2026, has created a new trend in the market. According to him, the prices of cars in this category have increased in line with duties.
"In addition, the used car market, which was practically 'collapsed' in 2025, has gradually started to revive this year. While last year a price drop of up to 35-45 percent was observed, this year, on the contrary, an increase in car prices is felt. However, this does not mean a significant revival in the market. On the contrary, January-February are traditionally considered a quiet period in the car market, and this year that stagnation was felt even more clearly. Weakness was observed in the sales of both new and used cars."
The chairman added that since the beginning of March, there has been some movement in the market, and interest in car dealerships and cars has increased again:
"Generally, those who want to buy a new car make their decision more often after mid-March. The reason is that buyers prefer the car to be manufactured in that particular year. That is, interest in cars produced in 2026 is higher compared to models produced in 2025 and put on sale in 2026. For this reason, there is quietness in the market at the beginning of the year, and sales gradually increase from the spring months."
E. Aliyev noted that regarding rare and collectible cars (rarities), their impact on the overall market is almost non-existent:
"These types of cars are imported into the country in limited numbers, mainly by individual orders. They are mostly used for collections or for visual purposes in places like restaurants and hotels. Therefore, the incentives given to this segment do not significantly affect the overall dynamics of the market," he said.
For your information, since January 1, 2019, only cars powered by electric engines have been exempted from VAT. Later, in 2022, incentives were applied to the import and sale of hybrid cars, as well as the sale and import of electric cars.