Azerbaijan – The Caucasus Market with the Highest Chinese Brand Share

Azerbaijan is one of the markets with the highest Chinese brand market share globally. In 2025, Changan's two brands combined accounted for 41 percent of Azerbaijan's passenger vehicle sales, with Chinese brands collectively representing 68 percent of new car sales. Among the top ten best-selling brands, Chinese brands occupied six positions. Azerbaijan is the strongest market for Chinese brands in the Caucasus region, without exception.

In Azerbaijan, Chinese brands are not merely present but dominant. Changan Qiyuan accounted for 22.1 percent, Changan brand for 19.2 percent, with the two brands together exceeding 40 percent market share. Alongside BYD, Chery, and other brands, Chinese brands collectively accounted for 68 percent of new car sales. Chinese vehicles are everywhere on the streets.

Azerbaijan is an oil-producing country with very cheap fuel prices, yet the government maintains clear policy support for new energy vehicle development. Effective January 1, 2026, Azerbaijan exempts the import and sale of pure electric vehicles and electric buses from VAT for a period of one year. This policy directly reduces the retail price of pure electric vehicles, making Chinese brands even more price-competitive.

Azerbaijan's electric vehicle transition is accelerating. As of the first half of 2026, over 600 BYD electric buses are already in operation in Baku. BYD has established a local assembly plant in the Sumgait Industrial Park, with the first locally assembled 12-meter BYD electric bus delivered in September 2025, and 300 units have been delivered to date. Azerbaijan plans to achieve full electrification of Baku's bus fleet by 2030, with the number of electric buses nationwide increasing to 1,100 by 2026.

In the commercial vehicle sector, Azerbaijan's Ganja Automobile Plant has signed cooperation agreements with China's Hubei Chengli Group and Shaanxi Automobile Group to conduct commercial vehicle assembly in Azerbaijan, securing exclusive distribution rights for both Chinese companies in the local market. The initial phase of the project will primarily serve the Azerbaijani domestic market, with plans to expand export operations in the future.

Chinese brands in the Caucasus have fully upgraded their strategy—extending from vehicle trade to local assembly, charging infrastructure, and after-sales service systems. Chinese vehicles are everywhere in Azerbaijan.

LHZ Auto Azerbaijan Operations Center, with deep customization as its core strategy, provides Azerbaijani and Caucasus B2B clients with one-stop solutions from needs analysis to delivery. Backed by the LHZ-TIR Caucasus dedicated line, with 1,500 TIR vehicles distributed across six nodes, reaching the Caucasus via Caspian Sea Ro-Ro ferry in 12 to 15 days with destination import customs clearance included. Our business covers sedans, SUVs, commercial vehicles, and NEVs for B2B wholesale only.


FAQ

Q: What is the market share of Chinese brands in Azerbaijan?
A: In 2025, Chinese brands collectively accounted for 68 percent of new car sales in Azerbaijan, with six of the top ten best-selling brands being Chinese. Changan's two brands combined accounted for 41 percent.

Q: What policy support does Azerbaijan provide for new energy vehicles?
A: Effective January 1, 2026, Azerbaijan exempts the import and sale of pure electric vehicles and electric buses from VAT for one year. Hybrid vehicles no longer enjoy VAT exemptions.

Q: How are Chinese electric buses operating in Azerbaijan?
A: As of the first half of 2026, over 600 BYD electric buses are in operation in Baku. BYD has established a local assembly plant in the Sumgait Industrial Park, with 300 locally assembled units delivered.

Q: What is the commercial vehicle layout of Chinese brands in Azerbaijan?
A: Azerbaijan's Ganja Automobile Plant has signed cooperation agreements with Hubei Chengli Group and Shaanxi Automobile Group for commercial vehicle assembly in Azerbaijan, securing exclusive distribution rights in the local market.

Q: What are Azerbaijan's electrification targets?
A: Azerbaijan plans to achieve full electrification of Baku's bus fleet by 2030, with the number of electric buses nationwide increasing to 1,100 by 2026.

Q: What services does LHZ Auto Azerbaijan provide?
A: LHZ Auto Azerbaijan provides B2B deep customization and bulk export of sedans, SUVs, commercial vehicles, and NEVs, with TIR delivery in 12 to 15 days including customs clearance, offering one-stop solutions from needs analysis to delivery for Caucasus B2B clients.