How will prices change in Azerbaijani car market?

Business Materials 18 August 2019 14:49 (UTC +04:00)

Baku, Azerbaijan, Aug. 18

By Matanat Nasibova - Trend:

The average price in the car market of Azerbaijan amounted to 38,817 manats in July 2019, Director General of MBA Group consulting company Nusrat Ibrahimov told Trend.

He noted that since the beginning of this year, the increase in prices in the car market amounted to 34 percent.

"According to market research, the price increase was caused by the increase in the excise tax rate on car imports, which entered into force from the beginning of 2019. Meanwhile, compared with last year, a decrease in activity is observed in the car market. There are a lot of offers in the car market and they significantly exceed demand. I believe that in the coming months prices for small cars are not expected to decline, given the high demand for them. It is also likely that cars with a large engine capacity will become cheaper, the prices of which are much higher," Ibrahimov said.

He noted that in July 2019, compared to June 2019, there was a decrease in prices for cars with a large engine capacity by 0.99 percent, and an increase of 3.8 percent was observed in prices for small cars.

"Moreover, there was a decline in interest in diesel cars, due to certain problems associated with high maintenance and repair costs. Customers mostly preferred KIA, Hyundai, Toyota cars. At the same time, the average price of expensive cars over the past month reached over 400,000 manats (mainly for Land Rover cars), and the average price for budget cars was 1,800 manats (mainly for 1984 VAZ cars)," Ibrahimov said.

The director noted that, despite the affordable price of Peugeot cars (an average of 16,000 manats), they are still not quite popular in Azerbaijan.


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