Those wishing to buy a hybrid car MUST HURRY

Customs benefits for hybrid cars end at the end of this year. Some experts believe that the benefits will continue next year, while others think they will completely end. It is predicted that if the benefits are not extended, prices in the automotive market will rise.

In recent years, Azerbaijan has seen a serious shift in the automotive market towards green technology. The growing interest in hybrid and electric vehicles is no longer just a trend. Behind this interest are important customs and tax benefits implemented by the state. However, by the end of 2025, a new phase is visible in the market: the period of benefits for hybrid cars is coming to an end.

BAKU.WS presents an article from the "Caspian" newspaper on this issue:

Neither VAT nor customs duty is paid

For the first time in 2019, the import of vehicles with electric engines was exempted from value-added tax (VAT). This was the first serious step in terms of promoting eco-friendly transport in the country. From 2022, these benefits were expanded even further: in addition to the import of electric vehicles, their sale was also exempted from VAT. From this date, benefits for hybrid cars also began to be applied. According to article 164.1.41-1 of the Tax Code, the import and sale of hybrid cars less than three years old with engine capacity not exceeding 2500 cm³ were also exempted from VAT. These benefits initially were valid until January 1, 2025. In 2023, the benefit terms were revised, and the VAT exemption period for electric and hybrid vehicles was extended until January 1, 2026. This further strengthened the position of green transport in the market. Currently, when importing electric vehicles, neither VAT nor customs duty is paid - only a customs service fee is applied.

However, the situation with hybrid cars is different. Although the VAT benefit for these cars has been extended, the customs duty benefit is expected to end at the end of 2025. This marks a turning point for car importers and buyers. If the benefit is not extended, from 2026, hybrid cars will be imported under the previous order - that is, with full duty. How will this affect the market?

"The used car market will revive"

According to the chairman of the board of the Association of Automobile Dealers of Azerbaijan, Eyyub Aliyev, while the benefit for hybrid cars will end, this is not expected for electric vehicles: "At the beginning of next year, that is, from January 1, the benefits end. The benefit for hybrid cars will expire. However, the benefits for electric vehicles will continue. Because according to the fifth point of the decree "Azerbaijan 2030: National Priorities for Socio-Economic Development," our country is called a country of clean environment and "green growth." In order to be a country of green growth, the stimulation of electric vehicles will be further strengthened."

E.Aliyev believes that if the benefit for hybrid cars ends, the market situation will change: "The market situation will be different from the current one. Currently, the used car market in the country has practically collapsed. Used cars are sold at very low prices. If the benefit for hybrid cars ends, then there may be a revival in the used car market. There will also be a small push in the sale of other new internal combustion engine vehicles with 0 kilometers."

"We can completely switch to electric vehicles"

According to the chairman, our country is ready for a complete transition to electric vehicles: "But I think that after the price increase in the hybrid car market, people will turn not to old cars, but to fully electric vehicles. All necessary equipment for electric vehicles already exists. Currently, you can travel by electric car to any point in the country. Considering the conditions created, I can say that we can completely switch to electric vehicles."