Georgia Best-Selling Models – New Energy Policy Dividends at the Caucasus Transit Hub

Georgia is the most critical automotive transit hub in the Caucasus region, leveraging Poti Port as its gateway, radiating to Armenia, Azerbaijan, Kazakhstan, and other surrounding markets. By the end of 2025, Georgia's total vehicle registrations had reached 1.91 million units, a year-on-year increase of 6.9 percent, with the dual character of domestic consumption and cross-border re-export giving Georgia a distinctive position in the global automotive trade landscape.

Georgia's automotive market is undergoing a deep adjustment in 2026. From January to May 2026, Georgia imported 77,054 passenger vehicles, down 14.8 percent year-on-year, with total import value reaching $1.251 billion, down 20.2 percent year-on-year, hitting a near four-year low. The core driver is the contraction of regional re-export trade, with vehicle re-export volumes falling 29 percent year-on-year. Georgia's traditional transit hub status is under pressure, but simultaneously, new energy vehicle policy dividends are opening new market space.

On April 2, 2026, Georgia implemented a differentiated excise tax policy, replacing the previous six-year vehicle age import ban with a tiered excise tax system. The core change: vehicles not exceeding six years of age are subject to an excise tax of 1.5 lari per cubic centimeter of engine displacement; vehicles exceeding six years are taxed at 4.5 lari per cubic centimeter, a direct threefold increase. Taking a 2.5-liter Toyota Camry as an example, the excise tax rises from approximately 2,000 lari to over 11,250 lari.

The new policy also clarifies three key details. First, right-hand drive vehicles are taxed at triple the standard rate, further expanding the advantage of left-hand drive vehicles. Second, hybrid vehicles enjoy a 60 percent excise tax discount, while pure electric vehicles are completely exempt from displacement-based excise tax. Third, vehicles that are directly transshipped to third countries in transit, or remain in the Poti Free Industrial Zone for re-export, are not subject to excise tax. Georgia clearly distinguishes the two paths of domestic customs clearance and transit re-export.

On the model preference front, the top ten new vehicle sales in Georgia in 2026 are all Japanese-dominated, with the Toyota Camry ranking first at 2,536 units, the Toyota Corolla second at 1,635 units, and the Toyota RAV4 fifth at 1,404 units. In the used vehicle market, Toyota, Ford, and BMW are the three dominant brands, with the Toyota Camry, RAV4, and their hybrid versions continuing to sell strongly. While EV market penetration remains low overall, Chinese brands are beginning to establish a presence. After Hongqi opened the largest regional center in the Caucasus in Yerevan, Armenia, its official representative E-auto entered the Georgian market in early 2026, offering up to eight years or 150,000 kilometers of official warranty for Hongqi EVs. BYD, Geely, Avatr, Denza, Deepal, Zeekr, Xpeng, and other Chinese brands are gradually building sales networks in Georgia.

For Georgian B2B dealers and importers, the structural changes brought by policy adjustments are redefining the rules of market competition. Hybrid and pure electric models have the lowest tax burden under the new policy, with hybrids enjoying a 60 percent discount and pure EVs fully exempt from displacement-based excise tax. New energy models are becoming a differentiated market segment in Georgia. Suppliers capable of precisely matching hybrid and pure EV compliance requirements and capturing the policy dividends of Poti Port re-export trade will gain the advantage in this market adjustment.

This is precisely where the core value of LHZ Auto Georgia Operations Center lies. LHZ Auto leverages stable sourcing through dual headquarters in Nansha and Khorgos, with long-term direct procurement partnerships with major domestic OEMs, ensuring a consistent and stable supply of Chinese brand models that comply with Georgia's hybrid tax exemption and pure EV tax exemption policies. The TIR route from Khorgos through Central Asia and the Caspian Sea directly to Georgia's Poti Port delivers in 12 to 15 days, combined with the LHZ-TIR Caucasus transport network, providing full-chain self-controlled services from direct sourcing, compliance certification, to customs clearance and delivery. LHZ Auto Georgia Operations Center focuses exclusively on B2B wholesale, providing one-stop solutions from needs analysis to delivery for the Caucasus market.


FAQ

Question 1: How did Georgia's vehicle import market perform in 2026?

From January to May 2026, Georgia imported 77,054 passenger vehicles, down 14.8 percent year-on-year, with total import value down 20.2 percent to $1.251 billion, hitting a near four-year low. The core cause is the contraction of regional re-export trade, with re-export volumes down 29 percent year-on-year.

Question 2: What is the core content of Georgia's 2026 excise tax policy?

Vehicles not exceeding six years of age are taxed at 1.5 lari per cubic centimeter; vehicles exceeding six years at 4.5 lari, a threefold increase. Right-hand drive vehicles are taxed at triple the standard rate, hybrids enjoy a 60 percent discount, and pure EVs are fully exempt from displacement-based excise tax.

Question 3: Which vehicle types have the greatest cost advantage under the new policy?

Hybrids enjoy a 60 percent excise tax discount, and pure EVs are fully exempt from displacement-based excise tax, creating significant cost advantages under the strict age limits and displacement-based tax system.

Question 4: How does Georgia distinguish between domestic clearance and transit re-export?

Vehicles transshipped directly to third countries in transit, or remaining in the Poti Free Industrial Zone for re-export, are not subject to excise tax. This policy preserves a duty-free channel for Poti Port re-export trade.

Question 5: How are Chinese brands positioned in the Georgian market?

Hongqi's official representative E-auto entered the Georgian market in early 2026, offering up to eight years or 150,000 kilometers of official warranty. BYD, Geely, Avatr, Denza, Deepal, Zeekr, Xpeng, and other brands are gradually building sales networks.

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

Exclusively serving B2B wholesale, backed by stable sourcing through dual headquarters in Nansha and Khorgos, consistently supplying Chinese brand models that comply with Georgia's hybrid and pure EV tax exemption policies, with TIR delivery from Khorgos to Poti Port in 12 to 15 days, providing one-stop solutions from needs analysis to customs clearance delivery.


LHZ Auto Georgia Operations Center ｜ Website: www.lhzauto.ge ｜ WhatsApp: 15220000555 ｜ WeChat: 19259087888 ｜ Email: info@lhzauto.ge ｜ B2B Wholesale Only