Electric car imports surge in Azerbaijan, reflecting global shift towards sustainable mobility

The import of electric cars to Azerbaijan increased in January-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 to 2022, and 36.2 times and 19.4 times higher compared to 2021, respectively.

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

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

Speaking to Azernews on the topic, economist Natig Jafarly discussed the potential impact of the increasing global adoption of electric vehicles on the demand for traditional internal combustion engine cars and consequently on the consumption of crude oil, diesel, and gasoline derived from oil.

Jafarly acknowledged that the shift towards electric vehicles is a natural progression but cautioned against expecting a drastic reduction in oil demand.

He pointed out that oil serves various purposes beyond fuel production, and reports from organizations like the International Energy Agency and OPEC project a gradual increase in global oil demand. Presently, daily oil consumption worldwide hovers around 100.1 million barrels, expected to rise to 110 million barrels by the 2030s, indicating a 10 million barrel increase.

Furthermore, Jafarly highlighted challenges associated with electric vehicles, such as the significant natural resources required for their production, suggesting that transitioning to electric cars might not be as straightforward as anticipated.

Regarding future fuel prices in Azerbaijan, Jafarly emphasized the pivotal role of government policy in determining prices. While global market dynamics may indirectly influence prices, the economist underscored that the Azerbaijani government regulates oil product prices.

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

Jafarly suggested that oil prices could experience a sharp decline in the foreseeable future, thereby influencing oil product prices in Azerbaijan.

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

"Electric cars seem attractive and appealing to manufacturers worldwide who are seeking ways to move away from traditional fuel sources. Electric cars belong to the class of vehicles that are most practical and usable today. Primarily, they are considered economically beneficial modes of transportation. They can achieve more mileage with less fuel consumption and operate more efficiently.

The second reason is the consideration of comfort elements in cars. While it is true that comfort features sometimes come with a higher cost in cars, various details are implemented for passenger comfort when designing electric cars. This indicates the growing interest in electric cars."

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

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