WORLD TRADE EXPO AZERBAIJAN

A New Path for Chinese automobiles to go Global as Seen from the Coast of the Caspian Sea

In 2024, with the in-depth advancement of the Belt and Road Initiative, Azerbaijan in the Caucasus region is becoming a new hot spot for the automotive industry to go global. This country, which spans Asia and Europe and borders Russia, Iran and Turkey, is accelerating the modernization process of its automotive industry. Meanwhile, Chinese exporters of complete vehicles and auto parts are also becoming a “key force” in this industrial upgrading.

In this issue, we ‘ve presented a comprehensive and practical guide to going global, covering the development of the Azerbaijani market, trends in car imports and local manufacturing, the advantages of Chinese companies going global, and finally back to the Azerbaijan Auto and Parts Expo we host.

1.Overview of the Azerbaijan auto market: Strong reliance on foreign trade, starting with local manufacturing

Imports dominate, but growth slows down

In 2024, Azerbaijan imported a total of 91,838 vehicles, with a total value of 1.844 billion US dollars. The number decreased by 4.3% year-on-year, but the value increased by 9.7%, indicating that consumers’ acceptance of mid-to-high-end models and new energy vehicles has improved.

Among them:

• Passenger vehicles account for more than 88% of total imports
• The annual growth rate of hybrid vehicles was 48.2 percent, reaching 10,382 cars
• Electric vehicles rose 6 percent year-on-year to 3,027cars
• Chinese brands perform strongly, with obvious advantages in terms of cost performance and new energy technology.

Local manufacturing began to gain momentum and output doubled

In 2024, Azerbaijan’s domestic automobile production was 4,433 cars, representing a significant year-on-year increase of 86.6%. Among them:

• Khazar (an Iranian cooperative brand) and NAZ-Lifan (a China-Arab cooperation project) are the core forces
• The Chevrolet assembly line in cooperation with Uzbekistan has produced 5,300 vehicles in the first half of 2024
• The government offers strong policy support to local manufacturing enterprises, such as tax exemption for imported components and exemption from value-added tax for local assembly.

2.The overseas expansion advantages of Chinese auto and auto parts enterprises in Azerbaijan2.The overseas expansion advantages of Chinese auto and auto parts enterprises in Azerbaijan

Superior geographical location: Azerbaijan serves as the core of the “China-Central Asia Corridor”

Azerbaijan not only has a stable domestic market, but also is connected to:

• Russian market: One of the traditional largest auto export markets
• Turkish market: Accessible by Baku-Tbilisi-Kars railway
• Iran and the five Central Asian countries: Strong complementaryin energy and industry

The market demand is extensive and the gap is obvious

• The spare parts supply chain is not sound, and local repair shops/dealers rely heavily on imports
• Industrial assembly is just getting started and there is an urgent need for components and technologies such as engines, tires, electronic control systems, and braking systems
• The after-sales service system for vehicles is still not mature. Chinese enterprises can enter the market through the “parts + maintenance + training” model

Chinese brands have a high acceptance rate and the after-sales network is being established

• Brands such as BYD, Chery and Changan have set up showrooms and service stations in the local area
• Chinese accessory brands such as MANCANDO and Goodyear have steadily expanded their local agency channels
• The brand perception that “Made in China = high cost performance + reliability” is taking shape

3. Eurasia Auto and Parts Expo

To assist Chinese auto whole vehicle, parts and maintenance equipment enterprises in entering the Caucasus market, we will hold the following event in the capital Baku from September 25^th to 27^th, 2025:

• Eurasia Auto and Parts Expo
• Exhibition Hall: Baku ExpoCenter
• Venue: Baku, Azerbaijan
• Scope of exhibits:

• Passenger cars, commercial vehicles, and new energy vehicles
• Automobile parts (engine system, braking system, electrical system)
• Automobile maintenance, repair and inspection equipment
• Electric vehicle charging piles, power batteries, hydrogen energy technology, etc

The Caucasus is not the end but a bridgehead for Chinese automakers to enter Central and Eastern Europe

Against the backdrop of the continuous upgrading of China’s automotive industry and the constantly setting new highs in exports, Azerbaijan, with its stable policy environment, geographical hub advantages and strong market demand, is becoming an important stop for “Made in China” to reach the Eurasian continent.

Accessory enterprises should not be confined to Southeast Asia. Automakers should not only focus on traditional powerful countries. The coasts of the Caucasus, the Caspian Sea and the Black Sea are becoming new battlefields that you must mark on your maritime map.

Next stop, Baku.