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Car import to Azerbaijan from CIS countries decreases with introduction of Euro-2 standards

Business Materials 11 October 2010 17:07 (UTC +04:00)

Azerbaijan, Baku, Oct. 11 / Trend I.Khalilova /

Car import from the CIS countries reduced by half during the year due to the application of environmental Euro-2 standards [July 1, 2010] to motor vehicles in Azerbaijan, the Azerbaijani State Customs Committee's Director General for Financial-Tariff and Currency Regulation, Mirgasim Vahabov, has said.

"Car imports from the CIS countries decreased by 7,000 to 9,000 for eight months of 2010," Vahabov said.

According to Vahabov, in general, the number of cars imported to the country declined with the application of the Euro-2 standards.

"This situation affects the amount of customs duties on car imports to the country," Vahabov said.

According to the State Customs Committee, Azerbaijan imported 32,859 cars worth $279 million in January-August 2010. During the report period, the import of vehicles and spare parts for cars made up 13.16 percent of the total imports to the country ($4,022,534 million). The import of vehicles and spare parts amounted to 99.92 percent of the total volume of their imports in January-August 2009.

Based on the cargo customs declarations, about 17,762 passenger cars worth $164 million was imported to the country, which is 3.6 percent less than imports in 8 months of 2009, and the customs receipt voucher - 15,097 vehicles worth about $116 million. Azerbaijan imported 63,427 passenger cars worth $456 million in 2009. 28,309 vehicles worth $254 million were imported based on the customs declarations and 35,118 cars worth $201.4 million based customs pay slips.

The new standards include two lines of the Euro-2 to motor vehicles:

- Relatively new cars imported to Azerbaijan. If the car model is brought into the country for the first time, it should pass procedures to determine the type for compliance with emission standards. In the subsequent importation of vehicles of the same brand examination will not be required;

- Examination of the already exploited cars on their compliance with emissions standards Euro-2.

Cars, which were manufactured after 1996 (with appear of the Euro-2), imported to Azerbaijan will be checked for compliance with the emission data specified in the datasheet. Import of these cars is possible after the implementation of technical work in the engine.

When importing new models, data about them will be included into a special database. After that, all cars of this model, not commissioned previously, will be imported to the country without being checked for compliance with Euro-2.

These conditions do not apply to vintage cars and vehicles that are already in operation.

Cars imported to Azerbaijan after July 1, 2010, will undergo an additional annual inspection, along with the annual mandatory. Cars that were imported into the country until July 1 will pass annual traditional inspection.

Earlier SOCAR head Rovnag Abdullayev said gasoline produced at SOCAR's refineries meet Euro-2 standards and even exceeds them in quality. SOCAR is working to improve the quality of the fuel to Euro-3 standards.

SOCAR intends to build a new facility, which will include new oil refinery, gas processing and petrochemical production, for the production of petroleum products that meet Euro-5 and above.

Origin of Vehicles and (or) Motor

Compliance with Euro-2 Based on Production Year

Cars imported from the EU*

1997 аnd onwards

U.S. and Latin America

1996 аnd onwards

Japan

1998 аnd onwards

Canada

2001 аnd onwards

India

2005 аnd onwards

Malaysia

2003 аnd onwards

China

2004 аnd onwards

Korea

2001 аnd onwards

Russia

2006 аnd onwards

Uzbekistan

2007 аnd onwards

Ukraine

2006 аnd onwards

Other CIS countries

2006 аnd onwards

Turkey

2001 аnd onwards

Iran

2009 аnd onwards

According to the NGO "Participants of the property market", 19.6-percent growth in proposals was observed in the automobile market of Baku in August due to old. The trend of excess of supply over demand for real also continued. There was also a reduction in the volume of transactions for buying and selling cars at 1.4 percent. The average price of a car fell by 1.1 percent to $14,985 in August from $ 15,150 in July.

Passivity, observed on the market in August, has caused the continued growth of the exhibition of cars. The liquidity ratio of cars reached the lowest level for three years.

In August, over 8,900 vehicles become the subject of studies on the secondary car market, of which only 27.9 percent were offered in August, the remaining 72.1 percent - in recent months. In addition to the reduction of imports, it is also associated with a decrease in purchasing power and market dynamics.

The mass flow of old cars in Baku, observed in the last four months became tougher in August.   

German Mercedes-Benz, which is the leader of the Baku market over the past 3 years, increased its share on the market by 14.3 percent to 35.5 percent in April.

The biggest growth among the proposals for car brands was recorded on second hand cars produced in Russia (59.5 percent).

The share of nine most popular car brands on the market of Baku was 84.6 percent. The rest 15.4 percent fall to 85 car brands of more than 20 auto companies.

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