Azerbaijan Auto Market continued its growth trajectory in 2023, achieving a 14.6% year-on-year increase. Hyundai became the leader with an impressive 68.4% growth. Kia (+47.6%), followed in 2nd, while Toyota lost its position as the market leader and ranked 3rd.
Market Trend and Outlook
In 2023, Azerbaijan’s economy grew by 1.5%, following a period of strong growth in the previous two years. The economy was initially driven by a robust expansion in the non-oil and gas sector, fueled by high global energy prices and large foreign currency inflows. However, growth slowed in the second half of 2022 as global energy prices moderated, and in 2023, the oil and gas sector’s output declined while non-oil sector performance remained positive.
Inflation, which had peaked at 15.6% in late 2022, moderated to 5.1% by September 2023 due to monetary tightening. Key structural reforms included progress on green energy projects, with a focus on transitioning to renewable sources, and the gradual deregulation of the electricity market. Government spending remained high, supported by strong nominal income growth, while export demand, especially for energy products, continued to drive economic activity.
In 2023, the Azerbaijani vehicle market experienced a 14.6% increase in sales, maintaining positive year-on-year growth throughout the entire year. In Q1, sales rose by 12.3% compared to the same period in 2022. This upward trend continued into Q2, with a 12.8% increase. In Q3, the growth accelerated to 16.4%, culminating in a peak of 17.2% in Q4.
Looking at the best-selling brands, Hyundai moved up one spot to become the new leader, with a growth of 68.4%. Kia also climbed one spot to take second place, growing by 47.6%, while Toyota dropped two spots to third, experiencing a decline of 28.1%.
BMW advanced three spots, achieving one of the most impressive year-on-year growths with an increase of 86.4%, alongside Land Rover, which grew by 133.8% and entered the Top 10 at 10th place.
Opel experienced the most significant drop among the Top 10, falling four positions to 8th place, with a sharp decline of 55.8%.
Looking at the best selling models, the Kia Sportage confirmed itself as the leader growing 50.1%, followed by the GAZon NExt in 2nd and the Hyundai Tucson in 3rd.
