Azerbaijan Auto Market hit a setback in 2022, dropping 9.3% in year-on-year volume. The leader was still Toyota, despite a 19.7% decline. Gaz overperformed all Top 10 Brands and grew 18 spots into 6th.
Market Trend and Outlook
Azerbaijan’s economic growth in 2022 was higher than expected, with GDP growth reaching 5.6%, driven by a strong performance in the non-oil and gas sectors. The economy saw a significant recovery post-COVID-19, with sectors such as gas and oil contributing to growth, although oil production declined. Inflation accelerated to 14.2% by August 2022, due to supply disruptions and rising energy and food prices. In response, the government implemented fiscal measures, including subsidies and social assistance, and the Central Bank raised the refinancing rate to combat inflationary pressures.
The economy is expected to maintain strong growth of 4.5% in 2023, with energy price moderation and structural weaknesses persisting. Efforts to diversify away from oil dependence include investments in green energy and infrastructure. The government has also introduced measures to combat corruption and improve public sector accountability, while expanding access to digital financial services. Long-term priorities include reducing carbon dependence and boosting renewable energy share by 2030.
Despite the overall positive economic outlook, the Azerbaijani vehicle market experienced a downturn in 2022, with year-on-year sales dropping by 9.3%. This negative trend persisted throughout the year, starting with a 6.4% decline in Q1 compared to the same period in 2021. In Q2, sales fell by 6.5%, and the decline deepened in Q3 with an 11.4% drop. The downturn peaked in Q4, where a significant 12.5% decrease was recorded.
Looking at the best-selling brands, Toyota remained the leader despite a 19.7% decline in sales. Hyundai secured the second spot with a 5.8% drop in year-on-year volume, while Kia held third place with a 4.1% decrease.
Opel moved up one position, despite a 22.9% year-on-year sales decline. Chevrolet fell one spot to fifth place and faced one of the largest drops among the top 10 brands, down by 52%.
In contrast to the overall market trend, Gaz saw an extraordinary 7737.5% growth, climbing 18 spots to take the 6th position.
In terms of best-selling models, the Kia Sportage maintained the top spot despite an 8.8% decrease in sales, followed by the Toyota Corolla in second place with a 34% drop. The GAZon NExt claimed third place, achieving an extraordinary 10,757.5% growth.
