Azerbaijan’s Auto Market in 2021 grew 66.37%, posting impressive growth which continued throughout the entire year. Toyota grew 110.57% and secured its spot as a leader, followed by Hyundai and Kia.
Market Trend and Outlook
In 2021, Azerbaijan’s economy began recovering from the COVID-19 pandemic and the 2020 oil price decline. Non-oil GDP was projected to grow by 3.5%, supported by eased lockdowns and vaccinations, while stable oil production and rising natural gas output offset declines in aging fields. Inflation was expected to rise to 4%, and the current account returned to a surplus of 2.5% of GDP due to recovering oil prices and natural gas exports.
Fiscal policy stayed accommodative, with plans for growth-friendly fiscal consolidation starting in 2022. Structural and financial reforms aimed to reduce oil dependence, diversify the economy, improve credit access, and strengthen oversight. Challenges like weak institutions and skill gaps remained obstacles to private sector growth.
The favorable economic outlook was reflected in Azerbaijan’s auto market, which achieved an impressive 66.37% year-on-year growth in volume. In Q1, sales increased by 58.6% compared to the same period in 2020. This positive momentum continued in Q2, with sales accelerating to a 65.5% increase. Growth peaked in Q3 at an impressive 72.75% before partially slowing in Q4, which still recorded a substantial growth rate of 70.12%.
Brand-wise, Toyota led the market this year, posting an impressive year-on-year volume increase of 110.57%, followed by Hyundai at 85.43% and Kia at 118.17%.
Nissan entered the top 10 at 8th place, achieving the highest growth among the best-selling brands with a remarkable 345.8% increase. Meanwhile, the local brand Khazar dropped to 12th place, recording a decline of 5.12%.
Among the best-selling models, the Kia Sportage emerged as the leader, achieving a remarkable year-on-year growth of 278.21%. The Toyota Corolla dropped to 2nd place but still recorded a notable increase of 84.33%. The Opel Corsa also posted an impressive growth of 167.04%, securing the 3rd spot.
