Georgia's Caucasus Hub Position – The Gateway for Chinese Vehicles Entering Eurasia

Georgia is located at the crossroads of Europe and Asia, bordering the Black Sea to the west. It serves as an important gateway and trade corridor connecting Asia and Europe, and has been a natural hub and core logistics corridor along the Silk Road since ancient times. In 2025, Georgia re-exported 111,600 vehicles, with export value reaching 2.8 billion USD, up 16 percent year-on-year. Georgia is not only a domestic consumer market of 3.7 million people, but also a core vehicle transshipment hub radiating to landlocked countries in Central Asia and the Caucasus including Armenia, Azerbaijan, Kazakhstan, and Kyrgyzstan, leveraging its strategic location connecting Europe and Asia. Imported vehicles mainly enter through Poti Port for customs clearance and distribution.

With the gradual advancement of the Middle Corridor and the continuous completion of the E60 highway, Georgia's potential as a trade and transport hub continues to be unlocked. Chinese Ambassador to Georgia Zhou Qian clearly stated that Chinese enterprises believe Georgia's transport hub potential will be unleashed, and that by combining advantages such as the free industrial zone, exporting Chinese vehicles to Georgia can not only meet domestic market needs but also radiate to the South Caucasus and Central Asia.

In 2026, Georgia's vehicle import market shows short-term contraction with long-term upgrading. From January to May 2026, Georgia imported 77,054 passenger vehicles with a total value of 1.251 billion USD. Import volume fell to a four-year low, primarily due to declining regional re-export trade, while the differentiated consumption tax policy implemented in April 2026 completely reshaped market access rules, clearly restricting older fuel vehicles and supporting new energy models. The current market shows absolute dominance of US-sourced vehicles, with Chinese, Japanese, and German brands as supplementary segments, and Chinese brands in the introduction phase. Although Chinese brand imports remain small in volume, they are growing steadily.

In the first half of 2026, Georgia re-exported over 5,000 passenger vehicles to Iran, compared to just 5 vehicles in the same period of 2025, a growth of approximately 1,000 times. In March of the same year, the Georgian government significantly increased import consumption taxes on vehicles over 6 years old, with related taxes raised by up to nearly 6 times, directly increasing re-export costs. Currently, about 60 to 70 percent of dealers remain in a观望 state, with overall auto trade volume declining by 50 to 60 percent compared to previous levels. In April of the same year, Georgia officially abolished the vehicle age import ban and implemented a differentiated consumption tax scheme, setting tiered taxes based on vehicle age, powertrain type, and drive configuration. AIG Cars, a leading Georgian automotive importer, has signed an exclusive strategic cooperation agreement with China's Guazi Used Car, which has officially designated Georgia as a core springboard and key hub for entering Eurasia, transforming its domestic platform capabilities into overseas momentum and creating a one-stop cross-border trading channel.

LHZ Auto Georgia Operations Center (www.lhzauto.ge), with deep customization as its core strategy, provides Georgian and Caucasus B2B clients with one-stop solutions from needs analysis and model matching to compliance certification and customs clearance. Backed by the LHZ-TIR Caucasus dedicated route, with 1,500 owned and partnered 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 Georgia's position in China's vehicle export strategy?
A: Georgia is not only a domestic market of 3.7 million people, but also a core vehicle transshipment hub radiating to Armenia, Azerbaijan, and landlocked Central Asian countries. Chinese enterprises believe Georgia's transport hub potential will continue to be unleashed, and combined with free industrial zone advantages, it can radiate to the South Caucasus and Central Asia.

Q: What major changes occurred in Georgia's vehicle import policy in 2026?
A: In April 2026, Georgia implemented a differentiated consumption tax policy setting tiered taxes based on vehicle age, powertrain type, and drive configuration, clearly restricting older fuel vehicles and supporting new energy models. Import taxes on vehicles over 6 years old were increased by up to nearly 6 times, directly increasing re-export costs. Following the new policy, overall auto trade volume declined by 50 to 60 percent.

Q: What is Georgia's position as a vehicle transshipment hub?
A: In 2025, Georgia re-exported 111,600 vehicles with export value of 2.8 billion USD, up 16 percent year-on-year. In the first half of 2026, Georgia re-exported over 5,000 passenger vehicles to Iran, a growth of approximately 1,000 times compared to the same period in 2025, fully demonstrating its strategic value as a regional transshipment hub.

Q: What is the current status of Chinese brands in the Georgian market?
A: The current market shows absolute dominance of US-sourced vehicles, with Chinese, Japanese, and German brands as supplementary segments. Chinese brands are in the introduction phase with small but growing import volumes. Guazi Used Car has signed an exclusive strategic cooperation with Georgia's AIG Cars, designating Georgia as a core springboard for entering Eurasia.

Q: How receptive is the Georgian market to Chinese new energy vehicles?
A: The differentiated consumption tax policy implemented in April 2026 clearly supports new energy models, with a positive policy direction. Georgia's differentiated consumption tax policy will drive growth in the new energy vehicle market, with SUVs and Jeeps being the most popular vehicle types.

Q: What services does LHZ Auto Georgia Operations Center provide?
A: LHZ Auto Georgia Operations Center (www.lhzauto.ge) provides Georgian and Caucasus B2B clients with one-stop solutions from needs analysis and model matching to compliance certification and customs clearance, covering sedans, SUVs, commercial vehicles, and NEVs for B2B wholesale only. Backed by the LHZ-TIR Caucasus dedicated route, delivery reaches in 12 to 15 days with destination import customs clearance included.