Decline in Passenger Car Imports in Georgia

According to January 2025 data, passenger car imports in Georgia fell by 25%. While 11,892 vehicles were imported in January 2024, the number dropped to 8,880 in the same period of 2025. The total value of imported vehicles also declined from $196.4 million to $151 million. However, despite the drop in volume, the average price of imported cars increased. In January 2024, the average price per car (excluding taxes) was $16,514, while in January 2025, it rose to $17,004.

The United States remains Georgia’s leading import source, supplying 6,675 vehicles in January, with a total value of $84.59 million. Japan and Germany hold the second and third positions, exporting 729 and 352 vehicles, respectively. While the U.S. continues to dominate the market, an interesting trend is China’s growing influence, as Chinese-made cars are gaining traction in Georgia’s automotive sector. In January 2025, Georgia imported 343 cars from China, valued at $2.67 million.

Factors Behind the Decline in Car Imports

The decline in passenger car imports is not just a local issue—global market changes have affected supply chains and pricing dynamics. One of the key factors is global inflation, which has raised raw material costs, particularly for steel, aluminum, and microchips, impacting car production costs.

• Post-pandemic production delays and supply chain disruptions from 2021-2022 triggered a surge in new and used car prices, a trend that persisted in 2023-2024.
• By the end of 2024, signs of market stabilization began to emerge, but the automotive industry has yet to return to pre-2019 levels of equilibrium.

Car markets across different countries are evolving uniquely.

• In the U.S., from where Georgia imports most of its vehicles, electric vehicle (EV) sales are rising rapidly, which has stabilized prices for traditional internal combustion engine (ICE) cars. However, new environmental regulations and technological standards continue to keep vehicle prices high.
• In Europe, rising vehicle prices are driven by stricter green energy policies, carbon taxes, and fuel consumption limits.
• China’s auto industry is experiencing rapid expansion, particularly in EV production. Companies like BYD and Nio are aggressively entering international markets, offering lower-priced alternatives compared to Western brands. Chinese car exports reached record highs in 2024, indicating that China is set to become a dominant player in the global automotive market.

The Future of Georgia’s Automotive Market

EV imports in Georgia remain low, but long-term trends suggest that Chinese and European manufacturers will play a major role in shaping the future of the market. Additionally, local and global banks are expanding green financing programs, making eco-friendly cars more accessible, which could further increase EV adoption in Georgia.

At the same time, the physical import of vehicles faces challenges due to banking regulations, rising transportation costs, and consumer financial constraints. Car purchases in Georgia are heavily dependent on leasing and bank loans, but recent tightening of credit issuance policies by banks has become an additional constraint, contributing to the decline in imports.

Long-Term Outlook

Georgia’s automotive market may undergo a radical transformation in the coming years. On one hand, economic factors will continue to influence import volumes, while on the other hand, global trends such as EV growth and green technology adoption will reshape the structure of imports.

• China and Europe are steadily increasing their global automotive supply, which could lead to a rise in EV imports to Georgia in the coming years.
• The current decline in imports may be temporary, but it reflects broader shifts in the global automotive market.

Consumers are shifting toward new technologies, and price fluctuations will largely depend on economic stability, banking policies, and international trade agreements.