26 February, 2024

In 2023, like the preceding year 2022, the Republic of Armenia experienced notable economic growth. Official data indicates that economic growth in 2022 reached 12.6%, positioning Armenia among the world’s leading countries. Despite a slight decline in economic indicators last year, with growth estimated at 9.4%, this figure remains significantly higher than the national average.

The evolving role of our country, particularly in the transformation of commodity and raw material circulation, has played a significant role in this economic trajectory. This transformation is particularly evident in the automotive sector.

According to the data provided by the State Revenue Committee of the Republic of Armenia, imports declared under customs code 8703 (motor cars and other motor vehicles principally designed for the personal use), were as follows according to which

- 45.241 cars were imported into Armenia in 2022, of which 3.833 (8,5%) are electric cars,

- 86.531 cars were imported into Armenia in 2023, of which 6.513 (7.5%) are electric cars.

Although there has been no increase in the percentage of electric vehicles among passenger cars within a year, it is important to emphasize that in 2023, compared to 2022, there was a 91.3% increase in the import of passenger cars and a 70% increase in electric vehicles.

It’s worth to emphasize that 12.747 electric cars were imported to Armenia between 2018 and 2023.

In this case, attention is drawn to the almost doubling of the number of imported cars within a year. Additionally, the number of registered cars is significantly lower than the number of imported cars. This indicates that Armenia has essentially become a transit country for car exports, with the main destination being the countries of the Eurasian Economic Union, particularly the Russian Federation.

At the same time, it must be noted that although the technical regulation “On safety of wheeled vehicles” (Technical Regulation of the Customs Union (TR CU) 018/2011) came into force in the Republic of Armenia in January 2020, there has been no consistent administration regarding vehicles, especially passenger cars, in accordance with the country’s commitments.

This means that the vast majority of cars imported to the Republic of Armenia (according to AORA calculations, approximately 95%), do not comply with the mentioned technical regulation, that is legislative requirements, at least in terms of documentation. This situation significantly damages the market’s image and greatly hinders the daily operations of official representatives. The so-called “gray” or sometimes “black” dealers, importing cars from various places, often flood the market with obscure brands that lack warranty or post-warranty service coverage. The main advantage of these cars is their low price, which becomes the primary factor influencing potential customers’ decisions.

One of the most concerning circumstances is the importation of electric cars intended exclusively for the domestic market of China, which also lack the appropriate certification documents. While the increase in the number of new and environmentally friendly cars can have a long-term positive effect on both the renewal of the car fleet and the environment, certain problems arise here as well. For example, the absence of official manufacturer warranty or representative functions of the seller often impacts the insurance market as well, preventing the relevant companies from accurately estimating insurance amounts payable in the event of a car accident.

Currently, the Government of the Republic of Armenia has circulated a draft decision aimed at implementing changes to the administration and control toward the provisions of the Technical regulation TR CU 018/2011. The expected date of entry into force of these changes is July 1, 2024, which means that certain changes in the market can be expected in the second half of the current year. Until then, it can be stated that the image formed in previous years will be preserved, at least in the first two quarters of the year.

View All