1. Basic situation

Georgia is located in the central and western parts of the South Caucasus, bordering Russia in the north, Azerbaijan and Armenia in the southeast and south respectively, Turkey in the southwest, and the Black Sea in the west. The capital, Tbilisi, has a land area of approximately 69,700 square kilometers and a population of 3.6886 million. According to data from the International Monetary Fund, in 2024, Georgia's per capita GDP will be US$9610, the highest among countries in the South Caucasus. The bilateral trade volume between China and Georgia in 2024 will reach US$2.26 billion, a year-on-year increase of 10.2%. Among them, China's exports to Georgia reached US$1.98 billion, a year-on-year increase of 2.4%. China's imports from Georgia were US$280 million, a year-on-year increase of 141.8%. China mainly exports non-alloy steel flat rolled products, machinery and equipment, vaccines and other immune products, rubber tires, etc. to Georgia; it mainly imports copper ore and concentrates, medical instruments and appliances, wine, unwrought aluminum, etc. from Georgia.

2. Automobile market situation

Georgia is a left-hand car country. 2014-2018 Georgia's automobile market developed steadily in 2001, with an average annual growth rate of around 5%, and annual sales stable at the range of 3,500 vehicles. This steady state in the market is mainly due to three factors: consumer demand remains stable, residents have limited room for improvement in purchasing power, and second-hand car imports dominate, which significantly suppresses the development space of the new car market. According to Focus2Move statistics, Georgia's average annual import of used cars reaches 15,000 units. Even against the background of an average annual GDP growth rate of 3.2% and the continuous improvement of the political environment, high-quality and low-cost used cars from Russia and other regions continue to flow in. As a result, the new car market share has never exceeded 20%. In 2019, Georgia's automobile market underwent significant changes. The number of vehicle registrations surged by 39% year-on-year, of which the proportion of new energy vehicles exceeded 5% for the first time. Although there was a short-term correction of 8.7% in 2020 due to the global epidemic, the market has regained growth momentum since 2021, maintaining a compound growth rate of more than 12% for two consecutive years. The latest data shows that the industry will enter a mature adjustment period from 2023 to 2024, with the annual growth rate stabilizing at around 1%, reflecting that the market is gradually returning to the new normal of rational growth after experiencing rapid development.

Judging from brand data, in 2024, Toyota maintained its market share, with a market share of 35.1%, a year-on-year increase of 2.1%. Renault and Ford ranked second and third with market shares of 9.6% and 5.6% respectively, and both increased by 1.1% year-on-year. In terms of models, Toyota RAV4 ranked first, with a year-on-year increase of 2.4%. Toyota Corolla and Renault Duster grew 2.6% and 1.4% year-on-year respectively, ranking second and third.

3. Policies and regulations on used car import

1. Import policy

Georgia only allows the import of left-hand rudder vehicles, and vehicles do not require mandatory inspection. Temporary imports are duty-free, but bank guarantees for the amount of VAT (18% of CIF value) during the temporary import period must be provided; in 2023, the Georgian government announced that it will restrict the sale of cars produced before 2013 from 2024 onwards, and the emission standards for imported used cars must meet Euro 5 or above.

Georgia stipulates that cars must be cleared within 3 months after import, during which they can be used and repaired; after 3 months, if the vehicle has not completed customs clearance, it can be parked in the local parking lot without paying taxes, but it needs to pay parking fees and cannot be used. Imported vehicles must obtain red provisional licence plates, each for a fee of 1 to 2 lari per day.

2. Tax policy

Georgia does not impose value-added tax on imported cars, only consumption tax and import tax. Among them, a zero tariff is imposed on electric vehicles, and a 50% tariff is imposed on hybrid vehicles. Fuel trucks need to be determined based on their age and displacement. Currently, the tariff is levied on vehicles with a 5-year old, which can be calculated through a dedicated website (my auto.ge).

3. Documents required for import

● Original ownership and registration certificate

● Invoice

● Bill of lading

● Certificate of origin

● Customs declaration form

● Statement of vehicle engine capacity

Source: "China's Used Car Export Country Guide2024"

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