Azerbaijan – The Global Market with the Highest Chinese Brand Share and Policy Shifts

Azerbaijan is one of the global markets with the highest Chinese automotive brand penetration. In 2025, Chinese brands collectively accounted for 68 percent of new vehicle sales in Azerbaijan, with Chinese brands occupying six of the top ten sales positions. Chang'an's two brands, Chang'an and Qiyuan, together held a market share of 41 percent, with BYD closely following. This figure is nearly unparalleled among major automotive markets worldwide.

The surge in Azerbaijan's market is no accident, with the core driver being the government's new energy tax exemption policy. As an oil-producing country, the Azerbaijani government promotes new energy vehicle development to conserve oil for export, implementing import duty exemptions for EVs and hybrids, significantly reducing the retail prices of Chinese hybrid and electric models. Driven by this policy, hybrid vehicle imports surged from 26,197 units in 2024 to 73,678 units in 2025, a 1.8-fold year-on-year increase. Among these, Chinese hybrid imports reached 62,488 units, a 3.8-fold increase, accounting for 84.8 percent. Chinese brands thus established their absolute dominance in the Azerbaijani market.

In 2025, the Chang'an UNI-Z topped Azerbaijan's single-model import rankings with 9,509 units, doubling year-on-year. BYD also performed strongly, with full-year imports reaching 10,186 units in 2025, a 632 percent increase over 2024. On the streets of Baku, Chinese brand models have become the most common sight.

However, the policy environment in 2026 is undergoing a major shift. From January 1, 2026, Azerbaijan only exempts pure electric vehicles from VAT, with hybrids and plug-in hybrids no longer eligible for VAT relief. At the same time, Azerbaijan raised the excise tax rates for vehicles over seven years of age, with the gasoline vehicle coefficient rising from 1.2 to 1.5 and the diesel vehicle coefficient from 1.5 to 2.0. Taking a 5.0-liter gasoline vehicle as an example, the excise tax rises from approximately 73,000 manat to 91,000 manat; for a 5.5-liter diesel vehicle, the excise tax already exceeds 200,000 manat. Hybrid policy incentives have receded, leaving pure EVs as the only differentiated segment retaining policy advantages.

For Azerbaijani B2B dealers and importers, understanding the policy shift and precisely matching pure EV demand has become the core challenge in the 2026 market. Suppliers capable of providing stable pure EV sourcing and compliance trade services during this policy adjustment window are becoming a scarce resource.

LHZ Auto Azerbaijan Operations Center focuses exclusively on B2B wholesale, leveraging the Group's TIR logistics network via the Trans-Caspian Caucasus corridor to reach Baku in 12 to 15 days, providing clients with full-chain trade services from needs analysis, model matching, compliance certification, to customs clearance and delivery.


FAQ

Question 1: What is the market share of Chinese brands in Azerbaijan?

In 2025, Chinese brands accounted for 68 percent of new vehicle sales in Azerbaijan, with Chang'an and Qiyuan together holding a 41 percent market share. Chinese brands occupied six of the top ten sales positions, making Azerbaijan one of the highest Chinese brand penetration markets globally.

Question 2: Why did Azerbaijan's hybrid vehicle market explode?

The government's import duty exemptions for EVs and hybrids, aimed at conserving oil for export, drove hybrid imports from 26,197 units in 2024 to 73,678 units in 2025, a 1.8-fold increase, with 84.8 percent coming from China.

Question 3: What are the best-selling Chinese brand models in Azerbaijan?

In 2025, the Chang'an UNI-Z topped single-model imports with 9,509 units, doubling year-on-year. BYD's full-year imports reached 10,186 units in 2025, a 632 percent increase over 2024.

Question 4: What policy changes occurred in Azerbaijan's new energy sector in 2026?

From January 1, 2026, Azerbaijan only exempts pure electric vehicles from VAT, with hybrids and plug-in hybrids no longer eligible for VAT relief. Pure EVs remain the only differentiated segment retaining policy advantages.

Question 5: What are the excise tax adjustments in Azerbaijan?

Excise taxes for vehicles over seven years of age have been increased, with the gasoline vehicle coefficient rising from 1.2 to 1.5 and the diesel vehicle coefficient from 1.5 to 2.0. A 5.0-liter gasoline vehicle's excise tax rises from approximately 73,000 manat to 91,000 manat.

Question 6: What services does LHZ Auto Azerbaijan Operations Center provide?

LHZ Auto Azerbaijan Operations Center focuses exclusively on B2B wholesale, leveraging the Group's TIR logistics network via the Trans-Caspian Caucasus corridor to reach Baku in 12 to 15 days, providing one-stop solutions from needs analysis, model matching, compliance certification, to customs clearance and delivery.


LHZ Auto Azerbaijan Operations Center ｜ Website: www.lhzauto.az ｜ Guangzhou Nansha: 15220000555 ｜ Khorgos: 19259087888 ｜ Email: china@lhzauto.com