Electric Vehicle Business in Georgia

The import of electric vehicles (EVs) in Georgia has seen unprecedented growth in recent years, reflecting global transportation trends. According to 2024 statistical data, 5,402 electric vehicles were imported into the country, marking a 151% increase compared to 2023, setting an absolute record over the last decade. This figure significantly surpasses 2,151 units in 2023 and 1,287 units in 2022, demonstrating that Georgia is rapidly transitioning to eco-friendly transportation.

Declining EV Prices and Market Accessibility

Another significant factor is the decrease in the average price of electric vehicles. In 2024, the average price of an imported EV was approximately $19,500, whereas in 2023, it was $25,900. This price drop has made EVs more affordable to a broader audience, likely due to market diversification and competitive pricing.

Key Suppliers of Electric Vehicles

The United States remains the primary supplier, accounting for 61% of total EV imports. A total of 3,299 EVs were imported from the U.S., amounting to $55 million. China ranks second, supplying 839 units (15.5%), followed by Japan with 837 units (15.5%). Germany and the United Arab Emirates also contribute to the market but in smaller quantities.

Rise of Chinese and Japanese EVs

China and Japan have been steadily gaining market share in Georgia, primarily due to China’s dominance in EV technology and its lower production costs. As the world’s largest EV manufacturer, China offers cost-effective yet technologically advanced vehicles, while Japanese brands are widely recognized for their energy efficiency and reliability.

Key Factors Driving EV Adoption in Georgia

Several factors have contributed to the surge in EV imports:

1. Tax Incentives: Georgia continues to provide tax exemptions on electric vehicles, making them more competitive compared to internal combustion engine (ICE) vehicles.
2. Falling Prices & Variety: The widening selection of EV models and declining costs allow consumers to make more diverse choices.
3. Environmental Awareness: Public awareness and trust in sustainable transport solutions have significantly increased.
4. Charging Infrastructure Expansion: The rising number of charging stations in Tbilisi, Kutaisi, and Batumi has made owning an EV more practical.

Challenges in EV Market Growth

Despite the surge in imports, EVs still represent a small share of the overall vehicle fleet. In 2024, EVs accounted for only 2.6% of total vehicle imports. This suggests that several barriers remain:

• Battery maintenance & service complexity
• Quality concerns of second-hand EVs
• Limited charging infrastructure outside major cities

Future Market Growth and Projections

EV adoption in Georgia is expected to increase, especially if government policies continue to support green transport through tax incentives and infrastructure development. The import structure is also likely to become more diverse, with greater participation from Chinese and European manufacturers.

Using historical data and mathematical models, the forecast for EV imports in Georgia is as follows:

• 2025: 7,500 – 8,500 units
• 2026: 10,000 – 11,500 units
• 2027: 13,000 – 14,500 units
• 2028: 16,000 – 18,000 units
• 2029: 20,000 – 22,000 units
• 2030: 25,000 – 28,000 units

These estimates consider economic growth, market capacity, and the expansion of charging infrastructure. If Georgia’s economy strengthens and consumer purchasing power increases, the figures could exceed expectations.

Key Challenges for Long-Term Growth

• Economic Limitations: Georgia is a small market, and EV adoption may slow down if household incomes do not increase.
• Infrastructure Development: The expansion of charging networks and power grid improvements will play a critical role in determining future growth.
• Government Policies: Continued tax incentives will be essential. If subsidies are removed, EV import rates could drop sharply.

Conclusion

Georgia’s EV boom has already begun, but its continuation depends on infrastructure, economic stability, and policy decisions. If the right investments are made, the country could transition more rapidly to sustainable transportation.

The shift towards EVs is not just an environmental move—it is also crucial for economic and energy security. By embracing green technologies, Georgia could strengthen its regional competitiveness and develop a modern, sustainable transport ecosystem.