To many, Georgia is a distant and quaint country, known for its ancient churches, wine, and the Caucasus Mountains. But in recent years, more and more Chinese companies have set their sights on this nation—not only because of its strategic location at the crossroads of Europe and Asia, but also because it’s becoming a springboard for Chinese manufacturing to enter Eastern Europe.

Walk through the streets of Tbilisi, and you’ll be struck by the overwhelming presence of Chinese goods. As one industry insider joked:
“This doesn’t feel like Georgia anymore—it’s practically the second home ground for Chinese home appliance brands.”

Behind the humor is the reality of Chinese brands rapidly gaining market share in this Caucasian country.

Why Are Chinese Home Appliances Booming in Georgia?

Though Georgia is a small country with a population of just 3.7 million, its home appliance market has been steadily expanding.

According to Statista, Georgia’s home appliance market is projected to reach $210 million in 2024, with a compound annual growth rate (CAGR) of 5.6% over the next five years.

Local consumers are shifting from simply buying “durable goods” to prioritizing modern appliances that offer functionality, aesthetics, and energy efficiency—with particular preference for:

1. Kitchen appliances (electric kettles, air fryers, blenders)
2. Personal care devices (hair dryers, shavers, hair stylers)
3. Smart audio-visual equipment (speakers, projectors, TVs)
4. Climate control and heating devices (ACs, refrigerators, electric fireplaces)

Thanks to high cost-performance ratios, reliable supply, and complete product lines, Chinese brands have become one of the main sources of imports.

New Regulations Incoming: EU-Level Energy Standards Required

 

The Georgian government recently announced a series of new regulations:

Effective December 31, 2025, a set of EU-aligned energy efficiency laws for household appliances will come into force, including:

 

• Mandatory energy labels from A+++ to D for consumer clarity
• Gradual phase-out of high-GWP refrigerants (e.g., R-410A)
• AC units and other appliances must meet EN 14511 and IEC EN 60335 standards
• Full adoption of Eco-design requirements aligned with EU Directives

 

This means Chinese manufacturers must begin adapting their products to meet the new standards and prepare for certification and labeling updates to ensure smooth export.

Chinese Enterprises Shine Bright — Big Orders Keep Rolling In!

 

At the 2024 Georgia International Expo, Chinese home appliance brands from across the country made a strong collective appearance—with impressive results:

 

Ningbo Xuehai Audio Co., Ltd.
A seasoned exhibitor in Georgia, this audio brand wowed local buyers with its sound quality and sleek design – securing over $300,000 in intended deals.

 

Ningbo Leiying International Trade Co., Ltd.
Specializing in digital gadgets like Bluetooth earbuds, projectors, and mini speakers, the company landed over $400,000 in orders during the three-day show. Several clients requested exclusive distribution rights, and their trade director said they’ll increase investment in the Georgian market.

 

Ningbo ANKE Electrical Technology Co.,Ltd
Their electric fireplaces and heating products were a major hit – drawing long lines at the booth and reaching $180,000 in intended deals.

 

Ningbo Frank Electrical Technology Co.,Ltd
Multiple models of electric kettles captured buyers’ interest with live demos, resulting in nearly $200,000 in signed orders.

 

Ningbo Shanding Electric Co., Ltd
Exhibiting a full range of personal grooming appliances like shavers, hair dryers, and stylers, the brand drew significant interest and signed $250,000 in deals.

 

Anhui Qiaoge Kitchenware Co., Ltd
Known for their healthy cooking air fryers, their booths attracted both families and local distributors – making them one of the hottest-selling product lines.

 

In total, the expo generated 200+ intended orders worth over $3 million, once again proving the growing influence of Chinese home appliance brands in the Georgian market.

 

September 19 – 21: Smart Life Expo 2025 Georgia Is Calling!

As China – Georgia trade relations continue to deepen, the 2025 Georgia International Expo will help Chinese companies systematically tap into the Georgian and surrounding markets:

Date: September 19 – 21, 2025
Venue: JSC Expo Georgia

Exhibition Highlights:

• 200+ high-quality Chinese enterprises showcased
• Direct matchmaking with local supermarkets, wholesalers, and chain buyers
• In-depth insights into policy changes and certification trends
• One-stop platform for trade networking and brand promotion

With the new energy regulations taking effect soon, now is the best time to seize the window of opportunity and enter the Georgian market!

 

Chinese Brands, Rising in the Caucasus — Starting from Georgia!

Why has this small country become a hidden champion for Chinese home appliance brands?

Because Georgia is fertile ground for market growth, a reflection of Eastern Europe’s evolving consumer landscape, and a symbol of China’s high-quality manufacturing going global.

In 2025, don’t miss this blue ocean market.
See you in Tbilisi at Smart Life Expo 2025 Georgia!

On July 22, 2025, the “Belt and Road Middle & West Asia Foreign Trade Market Business Matchmaking and Analysis Conference” was successfully held at the Lierda Technology Park in Yuhang, Hangzhou.

Guided by the Yuhang District Bureau of Commerce, hosted by Hangzhou Yuhang Chapter of China Chamber of International Commerce, and organized by KAC International Exhibition Group, the event focused on new opportunities for China’s foreign trade with Middle and West Asia under the Belt and Road Initiative. It aimed to build a platform for government-enterprise dialogue and international resource integration.

The event attracted representatives from government agencies, industry associations, foreign trade companies, and cross-border e-commerce enterprises, engaging in in-depth discussions on policy interpretation, market trends, business services, and project cooperation.

The opening was hosted by Ms. Gao Yana, Secretary General of Hangzhou Yuhang Chapter of China Chamber of International Commerce.Ms. Bao Liya, Deputy Director of the Yuhang District Bureau of Commerce, delivered a speech emphasizing Yuhang’s commitment to optimizing foreign trade services, guiding enterprises to seize Belt and Road opportunities, and enhancing international development capabilities.

At the conference, KAC International Exhibition Group and Zhejiang Baijiahui Network Technology Co., Ltd. signed a strategic cooperation agreement. The two parties will collaborate on exhibition resource integration in Middle and West Asia, cross-border trade services, and overseas warehouse cooperation, offering more comprehensive support for local enterprises going global.

Ms. Bo Xiaoxing, Manager of the Liaison Department of KAC International Exhibition Group, delivered a keynote titled “Market Trends and Strategic Opportunities in Georgia and Saudi Arabia”, focusing on Georgia’s zero-tariff policy for Chinese goods and market reforms under Saudi Arabia’s Vision 2030, providing strategic insights for business expansion.

Mr. Zhao Yang, General Manager of Zhejiang Baijiahui Network Technology Co., Ltd., introduced the company’s overseas warehouse networks in the Middle East, Central Asia, Europe, and North America, and highlighted the crucial role of overseas warehouses in improving delivery efficiency, reducing operational costs, and enhancing supply chain resilience.

During the networking session, corporate representatives actively interacted with guest speakers on topics such as market access and operational implementation, creating a lively and engaged atmosphere.

The organizers stated their commitment to continuously build mechanisms for government-business engagement, promote resource synergy, and upgrade service systems.

The conference concluded successfully in a warm and enthusiastic atmosphere. The organizers also expressed their dedication to further supporting local enterprises in participating in the Belt and Road Initiative, seizing growth opportunities in Middle and West Asia, and accelerating the development of an internationally competitive open economy ecosystem.

Acknowledgement:
(Special thanks to the following organizations, in no particular order)

Guided by :
Yuhang District Bureau of Commerce

Host:
Hangzhou Yuhang Chapter of China Chamber of International Commerce

Organizers:
KAC International Exhibition Group / Shanghai Kanchen Exhibition Co., Ltd

Co-organizers:
Mengchuang Community, Cangqian Sub-district
Lierda Technology Park

Every business trip—whether for an exhibition, collaboration, or market research—holds hidden opportunities.

Have you considered that the spaces between your itinerary might become an unforgettable journey?

 

If you’re heading to Georgia or Azerbaijan, gift yourself time to explore the world beyond work. These

Caucasus nations blend ancient charm with modern energy, offering unimaginable landscapes and cultural

treasures waiting to be uncovered.

 

Georgia: Where History Breathes in Every Sip

Tbilisi — Romance Woven into Stone

In this capital nestled in the Kura River Valley, life moves at a gentler pace. Wander cobblestone streets

past colorful wooden balconies, gaze at the hilltop Trinity Cathedral, and step into cafés straight from a film scene.

 

Don’t miss: Narikala Fortress, sulfur baths, and the Peace Bridge at twilight.

The Cradle of Wine

Georgia’s 8,000-year-old winemaking legacy thrives in clay qvevri vessels. Sip amber-colored wines at local

restaurants, paired perfectly with khinkali (savory dumplings)—an experience that lingers.

Kazbegi — Sanctuary in the Clouds

Venture north to where the Gergeti Trinity Church pierces the sky. Framed by snow-capped peaks and swirling

mists, this ethereal vista quiets the soul in an instant.

Azerbaijan: Where Fire Meets Heritage

Baku — A Dance of Eras

A city that bends time: futuristic Flame Towers and avant-garde museums stand beside Old Town’s medieval

alleys and mosques. Here, the Silk Road whispers to a modern skyline.
Must-see: Baku Boulevard, Maiden Tower, Flame Tower light show, Heydar Aliyev Center.

Natural wonders: Mud volcanoes and burning mountains

Beyond the city:

• Gobustan National Park: Ancient rock art etching prehistoric life.

 

• Yanar Dag: Hillsides ablaze with eternal natural gas fires—Azerbaijan’s “Land of Fire” unveiled.

Business Trip Magic: Savor the Moments

Tight schedules needn’t limit joy. Try these:
✅ Half-day escapes: Slot in micro-adventures between meetings.
✅ Seamless transit: Pre-book taxis or intercity transfers.
✅ Taste adventures: Dive into local cafés, night markets, and hidden eateries.
✅ Serendipity: Explore side streets, craft shops, and open-air bazaars—each corner holds surprises.

 

A Culinary Bridge Between Continents

• Georgia: Khachapuri (cheese bread), khinkali, badrijani (eggplant rolls), and soulful wines.
• Azerbaijan: Plov (saffron pilaf), dolma, succulent shashlik, and jam-sweetened black tea.

 

Each bite fuses Asian spice, Mediterranean zest, and Persian flair—a feast of converging cultures.

 

The True Souvenir

We leave for work but return with memories. In Georgia and Azerbaijan, you needn’t chase “must-sees”—

the entire land is a living storybook. Simply open your eyes, spare a moment, and let beauty find you.

 

So pause. A sunset stroll, a glass of wine savored slowly—these become the most precious footnotes to your

Caucasus journey.

 

Go. Not just for the exhibition.

Let your spirit wander too.

1GW is just the beginning. Our September exhibition will witness the full entry of Chinese enterprises into Azerbaijan!

 

With the continuous advancement of the “Belt and Road Initiative”, Chinese-funded enterprises are accelerating their exploration of the green energy and urban construction markets in Central Asia and the South Caucasus. Recently, Arctech signed a 1GW contract with POWERCHINA for the largest photovoltaic project in Azerbaijan’s history, marking the large-scale commercial application of China’s photovoltaic technology in the complex environment of high temperatures and strong winds in Central Asia. Meanwhile, Guangdong enterprises such as Faleo Lift and Digital Team Technology have also entered the market in a concentrated manner. The Azerbaijani market is becoming an important outpost for Chinese manufacturing to “go global”.

I. Arctech signed a 1GW photovoltaic project in Azerbaijan, setting a new record in China

 

In early June, Arctech and POWERCHINA (CEEC Northwest Institute) signed a photovoltaic power station cooperation agreement in Azerbaijan, covering Bilasuvar and Banka, with a total installed capacity of 1GW. Among them, the Villarsu-val project has become the largest photovoltaic power station under construction in the country.

The project adopts the SkyLine II intelligent tracking system independently developed by Arctech, which has multiple advantages such as flood resistance, wind resistance, modular installation, and intelligent algorithm-driven. The annual power generation is expected to reach 1.53 billion kilowatt-hours, reducing carbon dioxide emissions by 1.15 million tons annually, benefiting more than one million households.

This is another “technology + service” output following the completion of Azerbaijan’s first large-scale grid-connected photovoltaic project by China Information Technology Expo in 2023, demonstrating the leap of Chinese new energy enterprises in Central Asia from pilot exploration to large-scale implementation.

II. “Mutual Pursuit” : China-Arab cooperation has entered a new stage of institutionalization

 

On June 5^th, China-Azerbaijan Economic and Trade Cooperation Exchange Conference, jointly organized by the Azerbaijan Export and Investment Promotion Agency (AZPROMO) and the China Council for the Promotion of International Trade (CCPIT) Guangdong Provincial Committee, was successfully held in Baku. During the meeting, the two sides signed a Memorandum of Understanding (MoU) on regular industrial cooperation, investment connection and joint exhibition participation, marking that China-Arab economic and trade cooperation is moving from forum dialogue to mechanism coordination.

The signing representatives, Yusuf Abdolayev and Bai Mingshao, respectively stated that they will actively promote China’s in-depth participation in green energy, digital technology, intelligent manufacturing and other fields, and build a platform for Chinese-funded enterprises to “go global”.

Data shows that the bilateral trade volume between China and Arab countries exceeded $1.4 billion in January-April 2025 alone, up 37% year-on-year. China has become Azerbaijan’s fourth largest trading partner.

III. Feleo Lift and Digital Team Technology make their debut in Baku, and Guangdong enterprises expand into the construction and smart city markets

 

Apart from Arctech, Faleo Lift from Foshan, Guangdong Province, also made its debut in the Azerbaijani market at this exchange meeting. The company’s person in charge stated that Faleo plans to take advantage of the construction boom of high-rise buildings in Baku and other places to promote the localization of its products and seek installation and service partners.

Furthermore, the Chinese digital technology company “Digital Team Technology” has also signed a joint venture agreement with the Azerbaijan Dream Group, planning to establish joint enterprises in areas such as artificial intelligence and smart cities, and create a digital demonstration platform for Central Asia and the Caspian Sea region.

The entry of these “medium-sized enterprises going global” indicates that Chinese manufacturing is shifting from an export model to a deeper focus on “localization + branding + service orientation”.

IV. Energy transition and urban renewal: Azerbaijan Unleashes Two Major “investment dividends”

 

Green transition: According to Azerbaijan ‘s Renewable Energy Development Strategy, the country plans to have 6GW of renewable energy installed capacity by 2030, with photovoltaic power taking the lead. Under the dual goals of “carbon neutrality” and “energy independence”, Chinese enterprises have broad opportunities in EPC general contracting, equipment manufacturing, energy storage systems and other links.

Acceleration of urban development: Especially in Baku, a new round of urban renewal plans and housing construction boom are driving strong demand for supporting facilities such as elevators, power systems, smart buildings and green building materials. Since 2023, the annual growth rate of the country’s construction industry has exceeded 5%, and the enthusiasm for real estate investment has significantly increased.

Combined with the Alat Free Economic Zone, export incentives for “Made in Azerbaijan”, and fast-track approval and tax incentives, Azerbaijan is creating a rare “high potential and low threshold” investment environment among emerging markets.

V. Smart Life Expo Azerbaijan 2025 in September will be the highlight!

Time: September 25^th to 27^th, 2025

 

Seizing the territory in Europe and Asia is not only an opportunity but also a new starting point

From the implementation of gigawatt-level projects to the institutionalized cooperation of local economic and trade organizations, and then to the localization trials of small and medium-sized enterprises – Azerbaijan is becoming a key landing point for Chinese enterprises to expand the Eurasian plate of the “Belt and Road Initiative”. Here, there are not only policy benefits for energy transition, but also systematic demands for urban construction and digital upgrading.

In the future, how “Made in China” and “Chinese wisdom” will take root in Central Asia is worth the continuous attention of everyone who pays attention to going global and international industrial trends.

 

While many enterprises have yet to react, Azerbaijan, a key node on the “Belt and Road Initiative”, has quietly become a new hotspot for China’s exports of home appliances and electronic consumer goods. Why can it attract more and more Chinese brands? A set of the latest data will help you see the true potential of this blue ocean.

The market size continues to grow and has broad prospects

According to Statista’s forecast in May 2024, the market value of the e-commerce market in Azerbaijan is expected to exceed 1.76 billion US dollars in 2025, with an average annual growth rate of 10.47% in the coming years. By 2029, the market size is expected to reach 2.751 billion US dollars.

Meanwhile, the number of e-commerce users is also steadily increasing. It is expected to reach 2.571 million by 2029, and the user penetration rate will rise from 21.3% in 2025 to 24.8%.

Under such a trend, we will host Eurasian Home Appliance and Consumer Electronics Expo in Baku from September 25th to 27th, 2025, providing a platform for face-to-face communication and cooperation between enterprises from both China and Azerbaijan, and helping Chinese brands accelerate their entry into this rapidly rising market.

Consumer profile: Young and passionate about technology

The main force of e-commerce consumption in Azerbaijan is the young group, especially consumers aged 18 to 39, accounting for as high as 55.66%. They have a high acceptance of technological products and fashionable lifestyles and are willing to try online shopping. Meanwhile, the middle-aged consumer group aged 40 to 55 is also rapidly adapting to digital consumption, accounting for 38.82%, and their purchasing power remains stable.

Popular consumer categories: Chinese brands have great potential

According to Google Trends data, Azerbaijan consumers have a strong interest in the following categories:

• Electronic products: smart phones, laptops, televisions, audio systems, smart watches, etc.
• Household appliances: kitchen appliances, air fryers, vacuum cleaners, air purifiers, etc.

These product categories are precisely the strong points of “Made in China”. They not only have technological accumulation but also possess price competitiveness, making them popular choices among local consumers.

The successful experience of Chinese enterprises

Chinese enterprises have begun to reap the benefits in the Azerbaijan market. Take a medium-sized home appliance export enterprise as an example. After entering the Azerbaijan market in 2022, it relied on local channel partners to introduce kitchen appliances and air fryers to multiple retail terminals in Baku. In just one year, its export volume increased nearly threefold, and its annual sales exceeded one million US dollars.

In addition, brands such as Hisense, TCL, Xiaomi and Haier have also established brand recognition in the local area and have cooperated with multiple e-commerce platforms and chain retailers. The market foundation is gradually being consolidated.

How to seize the market opportunities in Azerbaijan?

For Chinese enterprises, the current period is a window of opportunity to enter the Azerbaijan market:

• Preferred partners: Local distributor resources are concentrated. Choosing a trusted partner helps to quickly open up the market.
• Localization adaptation: Voltage, plugs, language systems, after-sales policies, etc. all need to conform to local customs.
• Emphasize brand operation and after-sales service: Providing local customer service, maintenance support, and digital marketing will greatly enhance brand stickiness.
• By leveraging regional logistics and policy advantages, costs and timeliness can be optimized through means such as the Baku Free Trade Zone and the China-Europe Railway Express.

The Eurasian Home Appliance and Consumer Electronics Expo Azerbaijan (September 25-27, Baku) hosted by us is precisely an efficient channel to help Chinese enterprises quickly enter the market. During the exhibition, there will be multiple matchmaking activities, product displays and industry forums. We welcome enterprises that are interested in expanding their market in Azerbaijan to actively participate.

Summary: Take this step and reap the future

The home appliance and electronic consumer goods market in Azerbaijan is in a stage of rapid development, with a clear trend of consumption upgrade. Chinese brands are gradually winning the market by virtue of their product strength and price advantages. With the continuous deepening of the “Belt and Road” cooperation, Azerbaijan is becoming a strategic location that Chinese foreign trade enterprises cannot ignore.

The “Eurasian Home Appliance and Consumer Electronics Expo 2025 Azerbaijan” in September 25-27 will be your first step to open up this blue ocean.

Azerbaijan, a country located at the junction of Europe and Asia, is gradually emerging as a new market for premium consumer goods. With the rise of the middle class and the advancement of consumption upgrade, the luxury market in Azerbaijan has demonstrated tremendous potential. Chinese brands, especially those niche premium brands in the home furnishing, beauty, fashion and cultural and creative industries, are now enjoying unprecedented opportunities to go global.

I.Overview of  boutique goods market in Azerbaijan

1.Market size and growth trend

According to Statista, the luxury goods market in Azerbaijan is expected to reach 103.1 million US dollars in 2025, with an average annual growth rate of 2.25%. Among them, the luxury fashion category holds the largest share, with an estimated market size of 37.71 million US dollars in 2025.

In addition, the perfume market in Azerbaijan is also showing a rapid growth trend. It is expected that from 2024 to 2029, the market size will increase by 33.9 million US dollars, with an average annual growth rate of 6.5%.

2.Consumer behavior and preferences

Consumers in Azerbaijan, especially the younger generation, are increasingly inclined to pursue a personalized and high-quality lifestyle. They show a strong interest in high-quality goods with unique designs and cultural connotations.

II. Baku: A Barometer of boutiqueconsumption

Baku, as the capital of Azerbaijan, is home to numerous premium brands and designers. The following are some representative brands and shopping places:

• Stock: The first local fashion platform in Azerbaijan, bringing together 75 local designer brands and showcasing the unique fashion style of Azerbaijan.
• Chelebi: A brand founded by artist Aida Mahmudova, which combines traditional Azerbaijani art with modern home design and has launched a series of home products with cultural characteristics.
• Azerkhalcha: A brand dedicated to protecting and inheriting the traditional carpet weaving techniques of Azerbaijan, its products incorporate modern design elements and are deeply loved by consumers.
• Resm: A jewelry brand whose design inspiration comes from the history and culture of Azerbaijan, and its products have a strong national flavor.
• The Anjir: Offers handcrafted jewelry in a modern style and is deeply loved by young consumers.

In addition, handicraft markets such as Yasil Bazar (Green Market) and Abad in Baku are also good places to experience the local culture of Azerbaijan and purchase characteristic goods.

III. The overseas advantages of Chinese boutique brands

1.Strong cultural affinity

Azerbaijan is located at the junction of Europe and Asia and has had profound cultural exchanges with China throughout history. The people of Azerbaijan hold an open attitude towards Chinese culture and products, and Chinese brands enjoy a high level of recognition and acceptance in the Azerbaijani market.

2.Market demand is growing rapidly

With the continuous expansion of the middle class and the transformation and upgrading of lifestyles, Azerbaijani consumers have shown a higher level of attention to premium products that combine a sense of quality and design. From home furnishings, beauty products to fashion and cultural creativity, an increasing number of Chinese niche brands with cultural expression and product power are now facing an excellent opportunity to lay out in this emerging market.

3.Strong policy support

The government of Azerbaijan actively promotes economic diversification and encourages foreign investment in non-oil industries. Chinese brands can enjoy policy support from the government in terms of investing in factories, establishing brand images and expanding sales channels in Azerbaijan.

IV.Potential categories in the boutique market of Azerbaijan

1.Home life products

The demand for home products among Azerbaijan consumers is increasing day by day, especially those with a sense of design and practicality. Chinese brands have strong competitiveness in the home furnishing sector, especially in areas such as Nordic style, solid wood furniture and minimalist storage.

2.Beauty and personal care

The demand for beauty and personal care products among Azerbaijan women continues to grow, especially for those with natural ingredients and from niche brands. Chinese brands have strong R&D capabilities and cost-performance advantages in the beauty industry.

3.Fashion accessories

The demand for fashion accessories among Azerbaijan consumers is increasing day by day, especially for genuine leather handbags, accessories and functional items. Chinese brands have strong design and production capabilities in the field of fashion accessories.

4.Cultural and creative gifts

Azerbaijan consumers have shown a strong interest in cultural and creative gifts with cultural connotations and design sense. Chinese brands have strong creative capabilities and market expansion capabilities in the field of cultural and creative gifts.

V.Exhibition Recommendation: Azerbaijan BoutiqueExpo

To assist Chinese premium brands in entering the Azerbaijan market, we will hold Azerbaijan Boutique Expo 2025 in Baku from September 25^th to 27^th, 2025. The exhibition scope includes:

Fashionable Home Furnishing

• Furniture, home textiles, lighting fixtures, storage items, home fragrances, and smart small appliances

Beauty and personal care

• Skincare and makeup, hair care and fragrance, beauty devices, natural personal care products, and emerging domestic makeup brands

Fashion accessories

• Bags, shoes, accessories, trendy clothing, eco-friendly outfits, and original brands

Cultural and creative gifts

• New Chinese-style cultural and creative products, craft ornaments, writing stationery, custom gift boxes, and intangible cultural heritage derivatives

Children’s Life

• Educational toys, parent-child products, organic children’s clothing, maternal and infant care, and family parent-child gifts

Expo highlights:

• Invite local Azerbaijan distributors, buyer’s stores, cross-border distribution platforms, middle-class female consumers in Baku, high-end supermarket and retail channel purchasers to visit and negotiate.
• We offer exclusive services such as business matching, local translation and shopping guidance, social media operation support, and brand channel connection salons.

 

VI. Conclusion: Azerbaijan – A New Opportunity for Chinese BoutiqueBrands to Go Global

Azerbaijan, as a country at the junction of Europe and Asia, is gradually emerging as a new market for premium consumer goods. Chinese brands, especially those niche boutique brands in the home furnishing, beauty, fashion and cultural and creative industries, are now enjoying unprecedented opportunities to go global. By participating in Azerbaijan Boutique Expo 2025, you will have the opportunity to directly access Azerbaijan market, expand brand influence and explore new growth points.

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.

Chinese new energy vehicle companies cooperate with Azerbaijan to support its implementation of the “Green Unity Year” in 2024

On July 2nd, the Azerbaijani government held an online signing ceremony with Chinese new energy vehicle company BYD Co., Ltd. to purchase 160 electric buses. Azerbaijan’s Deputy Prime Minister Shahin Mustafayev presided over the signing ceremony, and the Acting Charg é d’affaires of the Chinese Embassy in Azerbaijan, Ding Tao, attended the event.

At the signing ceremony, Aliyev, First Deputy Minister of Economy of Azerbaijan, Humatov, Deputy Minister of Digital Development and Transport, Rustamov, Director of Electrify Azerbaijan Limited, and Tian Chunlong, General Manager of BYD Commercial Vehicle Division, signed a framework agreement on localized assembly and production of electric buses. Electrify Azerbaijan Limited Director Rustamov, Baku Bus Limited General Manager Garibov, and representatives from BYD Company have signed a supply agreement to provide 160 electric buses and 100 charging stations. This move aims to localize green energy production and contribute to Azerbaijan’s “Green Unity Year”.

According to reports, according to the agreement framework signed by both parties, in addition to the order to purchase 160 electric buses, the Azerbaijani government will also purchase 200 electric buses from BYD Company annually from 2025 to 2028 and carry out localized assembly. In the future, both parties plan to carry out deeper cooperation in local production.

At the beginning of this year, Azerbaijani President Aliyev signed an order declaring 2024 as the “Green Unity Year” of Azerbaijan, intending to build the Karabakh region, East Zangezur region, and Nakhchivan Autonomous Republic into “smart cities” and green energy bases. Azerbaijan has committed to reducing greenhouse gas emissions by 35% compared to 1990 by 2030, increasing the proportion of renewable energy generation to 30%, and reducing greenhouse gas emissions by 40% by 2050, becoming a “green and environmentally friendly country”. Currently, China has become a global leader in the field of new energy vehicles. The Azerbaijani government is increasingly aware of the importance of cooperation with Chinese companies and has repeatedly expressed its willingness to provide a favorable business and investment environment for Chinese investors.

It is worth mentioning that Azerbaijan will host the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) this year. The government hopes to attract Chinese new energy enterprises as investors, builders, and operators to participate in Azerbaijan’s national green energy transformation process through this conference.

From January to May 2024, the cumulative amount of auto commodities exported by China to the “the Belt and Road” countries will reach 51.32 billion US dollars, up 13.3% year on year, accounting for 55.2% of the total export of auto commodities. Among them, 1.565 million vehicles were exported, a year-on-year increase of 29.5%, accounting for 64% of the total automobile exports.

The Azerbaijani government and Chinese new energy vehicle company BYD Co., Ltd. reached multiple important agreements at an online signing ceremony, marking a deep cooperation between the two sides in promoting the development of electric vehicles and green energy.

The signing ceremony was presided over by Azerbaijani Deputy Prime Minister Shahin Mustafa Yev, and the Acting Charg é d’affaires of the Chinese Embassy in Azerbaijan, Ding Tao, also attended the event. Aliyev, the First Deputy Minister of Economy of Azerbaijan, Humatov, the Deputy Minister of Digital Development and Transport, Rustamov, the Director of Electrify Azerbaijan Limited, and Tian Chunlong, the General Manager of BYD Commercial Vehicle Division, signed a framework agreement on localized assembly and production of electric buses. At the same time, Rustamov, Director of Electrify Azerbaijan Limited, and Garibov, General Manager of Baku Bus Limited, signed a supply agreement with representatives of BYD Company, including the provision of 160 electric buses and 100 charging stations.

The signing of these agreements aims to support the “Green Unity Year” initiative announced by the Azerbaijani government, which plans to transform the Karabakh region, East Zangezur region, and Nakhchivan Autonomous Republic into smart cities and green energy bases. The Azerbaijani government has also committed to reducing greenhouse gas emissions by 35% compared to 1990 by 2030 and increasing the proportion of renewable energy generation to 30%. These cooperation measures not only promote the improvement of Azerbaijan’s localized production capacity, but also strengthen strategic partnerships with Chinese enterprises in the field of green technology.

In addition, Azerbaijan will host the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) and hopes to attract more Chinese new energy enterprises to participate in its national green energy transformation process through this platform. These measures indicate that the Azerbaijani government is willing to provide a favorable business and investment environment for Chinese investors, jointly promoting sustainable development and global environmental protection.

Azerbaijan ranks among the top ten global foreign investment markets in 2024

On January 5th, Azerbaijan’s “Trend” website reported that based on data from the International Monetary Fund and the Financial Times Cross border Investment Monitor, the “Annual Foreign Direct Investment Outstanding Observer List” evaluated the macroeconomic performance and foreign direct investment trajectory of the world’s top 50 foreign direct investment destinations, and ranked Azerbaijan as the seventh largest market country for foreign investment in 2024, with Cambodia, the Philippines, Kenya, Iraq, Namibia, Kazakhstan, Azerbaijan, Morocco, Serbia, and India ranking in the top ten.

In addition, the International Monetary Fund predicts a GDP growth rate of 2.5% for 2024.

Azerbaijan’s GDP growth in 2024

In the first five months of 2024, the Azerbaijani economy showed significant resilience and growth, with a significant increase in Gross Domestic Product (GDP). From January to May, GDP surged by 4.2%, reaching an impressive 4802.6 billion manats. Azernews conducted in-depth research on the factors that contributed to this economic improvement, with a particular focus on the significant growth in non oil and gas sectors.

One of the main drivers of Azerbaijan’s GDP expansion is the strong performance of the non oil and gas sector. According to the report of the Statistical Commission, the value-added output of the department has significantly increased, surging by 7.3% compared to the previous year. This growth indicates that the Azerbaijani economy has freed itself from traditional dependence on oil and gas revenue and achieved diversification.

Although the non oil and gas sector has experienced significant growth, the oil and gas sector has remained relatively stable. Despite global oil price fluctuations and increasing geopolitical tensions, Azerbaijan’s oil and gas industry has maintained its contribution to overall GDP, providing a solid foundation for economic stability.

Decomposing the composition of Azerbaijan’s GDP can provide a deeper understanding of the industries driving economic growth. The industrial sector leads with 39.7% of GDP, followed by trade and automotive maintenance (9.6%), transportation and warehousing (7.0%), construction (6.0%), agriculture, forestry and fisheries (3.8%), tourism accommodation and public catering (2.4%), and information and communication (1.8%). The remaining 20.1% of GDP comes from various other sectors. In addition, net taxes on products and imports played an important role, contributing 9.6% to GDP.

A significant aspect of Azerbaijan’s economic growth is its positive impact on per capita income. The per capita GDP is 4713.3 manats, and economic improvement has the potential to improve living standards and increase people’s purchasing power.

Multiple factors may have contributed to Azerbaijan’s strong economic growth. This includes measures taken by the government to achieve economic diversification, attract foreign investment, and promote entrepreneurship. In addition, ongoing infrastructure projects and efforts to improve the business environment may stimulate economic activity in various sectors.

The impressive GDP growth of Azerbaijan in the first five months of 2024 highlights the country’s economic resilience and potential for further development. The significant expansion of non oil and gas sectors, coupled with the stability of the oil and gas industry, reflects a positive trajectory of economic diversification and sustainability. Looking ahead, it is crucial to continue working towards creating a favorable business environment and investing in key sectors to maintain this momentum and drive long-term prosperity.

Azerbaijan has demonstrated remarkable economic performance in 2024, with its dual honors of GDP growth rate and global foreign investment market ranking highlighting the country’s prominent position on the global economic stage and its potential for sustained development. According to the International Monetary Fund’s forecast, Azerbaijan’s economic growth rate has reached 2.5%, reflecting its economic resilience and growth momentum. Especially in the first five months of 2024, Azerbaijan’s GDP grew rapidly at a rate of 4.2%, reaching a total of 4802.6 billion manats. This achievement not only demonstrates the effectiveness of economic structural adjustment, but also lays a solid foundation for sustained economic growth in the future.

One of the engines of economic growth in Azerbaijan is the significant expansion of the non oil and gas sector. The value-added output of this sector has grown by an astonishing 7.3%, demonstrating the significant progress made by the country in economic diversification. Despite fluctuations in the global oil market and geopolitical tensions, Azerbaijan’s oil and gas industry remains stable, providing reliable support and a stable source of income for the country’s economy.

Azerbaijan has been ranked as the seventh largest destination country in the global foreign investment market in 2024, which not only demonstrates its competitiveness in attracting foreign direct investment, but also reflects its favorable investment environment and the effectiveness of government driven economic reform measures. According to data from the International Monetary Fund and the Financial Times Cross Border Investment Monitor, Azerbaijan has performed outstandingly in macroeconomic performance and foreign direct investment trajectory, ranking among the top ten along with other countries such as Cambodia and the Philippines.

Another significant feature of Azerbaijan’s economic growth is its positive impact on per capita income. The per capita GDP has reached 4713.3 manats, indicating that economic growth is penetrating into the general population, improving people’s living standards and consumption capacity.

Behind this economic success, the government’s economic diversification strategy and policy measures to improve the business environment have played a key role. In addition, ongoing infrastructure projects and investments in key sectors have injected new vitality and momentum into the Azerbaijani economy. Looking ahead, continuing to optimize the business environment and promote sustainable development in more areas will be an important measure for Azerbaijan to maintain its economic growth momentum and achieve long-term prosperity. With the changing global economic environment, Azerbaijan will continue to strive for strategic goals of economic diversification and attracting foreign investment to strengthen its position and competitiveness in the global economy.

🎪 The 7th Smart Life Expo Azerbaijan will be grandly held in Baku from September 25-27, 2025!

With the continuous and in-depth promotion of the “the Belt and Road” initiative, the economic and trade cooperation between China and Azerbaijan has been accelerating. The latest data shows that China has risen to become Azerbaijan’s fourth largest trading partner, with continuous growth in bilateral trade volume and expansion of cooperation areas. From traditional energy to high-tech, from infrastructure projects to consumer goods supply chains, cooperation is constantly moving towards deeper development.

🇨🇳🛒  What are the popular Chinese products in Azerbaijan?
Against the backdrop of increasing trade between China and Azerbaijan, Chinese products have also won the favor of more and more consumers in the Azerbaijani market,
The following categories are particularly prominent:
🔧 Building materials, hardware, and decoration: Chinese made building materials and electric tools have high cost-effectiveness and are highly popular in the construction industry in Azerbaijan.
📺 Household appliances and consumer electronics: From smart TVs to small kitchen appliances, Chinese products have quickly captured the market with stable quality, advanced technology, and reasonable prices.
👕 Boutique and daily consumer goods: The Azerbaijani market has a stable demand for fashionable boutique and practical Chinese daily consumer goods, making it an important export market for enterprises.
🚗 Auto and parts: Chinese brand automotive parts, tires, lubricants and other products occupy a place in the maintenance and after-sales market with high cost-effectiveness.

🎯 The 7th Azerbaijan Smart Life Expo
📍 September 25-27, 2025, Baku International Exhibition Center
Hosted by KAC International Exhibition Group

🏗 Building materials and decorative products
🧼 Daily Necessities · Home Furnishings Boutique
📺 Consumer Electronics · Home Appliances
🚗 Auto parts supplies · Tire lubricating oil

The exhibition will assist Chinese enterprises in “borrowing exhibitions to go global” through physical display, precise docking, and landing services, efficiently linking resources in the Central Asian market, and achieving a “win-win” situation for trade landing and brand promotion.

China has become Azerbaijan’s fourth largest trading partner!

Highlights of the previous exhibition

✅ Adopting the “Exhibition+Merchant” model to create a face-to-face trade matching platform
✅ Provide landing service support to help enterprises accurately connect and achieve transactions
📌 Booth reservations are currently in full swing!
🌟 Sign up for the exhibition, expand the Caucasian market, and join the “the Belt and Road”!
📱 Consultation WeChat | Add Exhibition Assistant: (WeChat account space occupation)
🌐 Official website registration | www.kacexpo.com