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Car sales in Georgia fall sharply

Business Materials 9 April 2020 16:51 (UTC +04:00)
Car sales in Georgia fall sharply

BAKU, Azerbaijan, Apr.9

By Tamilla Mammadova – Trend:

Due to the COVID-19 outbreak, Georgia’s car market has stopped operating along with the real estate sector, Trend reports citing Georgian media.

As reported, a decrease in purchasing power of the population and uncertainty as to how or when the crisis will end have slashed vehicle sales to zero.

Given that Georgia has recently become a regional hub for re-exporting used cars, the closure of external borders has significantly worsened the situation, given that a significant number of imported cars were exported to Azerbaijan and Ukraine.

Car dealers do not exclude they will have to lower prices in a bid to increase the sales.

In the words of Director of Caucasus Auto Import Giorgi Surguladze, apart from the sales, there is also a supply problem.

“Due to closed borders, new cars will not be brought for at least three months, but after the crisis ends, the situation can balance. However, today the market is in a very difficult situation. If before the crisis we sold 8,000 cars per month, now we’re selling almost nothing, ” Surguladze noted.

Meanwhile, due to the coronavirus spread in Georgia, such sectors of the economy as tourism, recreation, entertainment, transport and part of trade suffered significant losses.

The lari fell against the backdrop of a stopped global economy and a sharp drop in oil prices on world markets. All this was a serious shock to the Georgian economy, and the authorities have already recognized that it will not be possible to maintain the economic growth rate this year.

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