Electric Car Imports Surge In Azerbaijan, Reflecting Global Shift Towards Sustainable Mobility

The import of electric cars to Azerbaijan increased inJanuary-April of 2024. During this period, 1,012 electric vehicles(electric cars) were imported into the country.

Last year, Azerbaijan imported 3,102 electric vehicles worth$125,268,000, which is 7.1 times and 6.4 times higher compared to2022, and 36.2 times and 19.4 times higher compared to 2021,respectively.

It should be recalled that in the same period of 2023, thenumber of imported electric cars was 568, and the value was 23.8million dollars.

Azerbaijan offers more flexible credit terms for new electriccars, and with the increasing number of electric charging points inthe country, the sale of electric cars continues to grow. As aresult, owning an electric car is becoming increasingly popular andaligns with current trends.

Speaking to Azernews on the topic, economist Natig Jafarly discussed the potentialimpact of the increasing global adoption of electric vehicles onthe demand for traditional internal combustion engine cars andconsequently on the consumption of crude oil, diesel, and gasolinederived from oil.

Jafarly acknowledged that the shift towards electric vehicles isa natural progression but cautioned against expecting a drasticreduction in oil demand.

He pointed out that oil serves various purposes beyond fuelproduction, and reports from organizations like the InternationalEnergy Agency and OPEC project a gradual increase in global oildemand. Presently, daily oil consumption worldwide hovers around100.1 million barrels, expected to rise to 110 million barrels bythe 2030s, indicating a 10 million barrel increase.

Furthermore, Jafarly highlighted challenges associated withelectric vehicles, such as the significant natural resourcesrequired for their production, suggesting that transitioning toelectric cars might not be as straightforward as anticipated.

Regarding future fuel prices in Azerbaijan, Jafarly emphasizedthe pivotal role of government policy in determining prices. Whileglobal market dynamics may indirectly influence prices, theeconomist underscored that the Azerbaijani government regulates oilproduct prices.

He mentioned the possibility of price fluctuations, both upwardand downward, contingent upon the government's stance on thematter. Despite prevailing discussions focusing on price hikes,

Jafarly suggested that oil prices could experience a sharpdecline in the foreseeable future, thereby influencing oil productprices in Azerbaijan.

Talking about the recent growing interest in electric cars inthe country, transportation expert Aslan Asadov said that the main reason is the increasing demand for alternativeenergy vehicles in the world.

"Electric cars seem attractive and appealing to manufacturersworldwide who are seeking ways to move away from traditional fuelsources. Electric cars belong to the class of vehicles that aremost practical and usable today. Primarily, they are consideredeconomically beneficial modes of transportation. They can achievemore mileage with less fuel consumption and operate moreefficiently.

The second reason is the consideration of comfort elements incars. While it is true that comfort features sometimes come with ahigher cost in cars, various details are implemented for passengercomfort when designing electric cars. This indicates the growinginterest in electric cars."

Speaking about the simplified tax assessment to attract electriccars to Azerbaijan, the expert noted that this ensures thepopulation's access to this type of vehicle.

"Additionally, there are no excise taxes or customs duties forelectric cars. There are only minimal declaration costs and servicecharges. In contrast, cars with internal combustion engines used toincur tens of thousands of manats in customs duties, excise taxes,or VAT. However, the government has waived all of these."

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