Passenger cars still top Georgia’s exports list, but trade has lost a quarter of its value in a year, dropping by 24% in the first nine months of 2026. Kyrgyzstan remained the top importer of cars, with experts claiming that is as the cars are re-exported to Russia in a bid to evade sanctions.
According to the National Statistics Bureau, Geostat, in the first nine months of 2026, Georgia re-exported 63,141 vehicles worth $1.5 billion — a $475 million or 24% drop from the same period in 2025.
The decline traces back to falling sales to Georgia’s largest car buyers: Kyrgyzstan, Kazakhstan, Azerbaijan, and Tajikistan.
Kyrgyzstan was the engine of the recent boom. Since 2024, Georgian car re-exports to the country surged, largely because Kyrgyzstan is not subject to sanctions imposed on Russia. Kyrgyz dealers were therefore free to resell the vehicles they bought onward to Russia. That route has been shrinking since the start of 2026.
Iran has entered the top 10 destinations for Georgian car re-exports, taking 7,380 vehicles worth $130 million, an increase of 18,600% on last year. Exports to Armenia and Turkmenistan have also risen.
Independent economic expert Roman Gotsiridze told OC Media that the drop was caused by domestic legislative changes.
‘A legal amendment made car imports more expensive, and the customs clearance cost for older cars tripled,’ he said. As a result, fewer cars were sold locally, which had a knock-on effect on the re-export business.
Gotsiridze was referring to amendments passed in March 2026, raising the tariffs for customs clearance of vehicles aged six years and older. Customs clearance for vehicles aged between three to six years also became more expensive. The changes have been in force since April.
Georgia is known for buying damaged vehicles, repairing them in the country, and then exporting them. With fewer cars passing through, there was less repair work and fewer vehicles to send abroad. Gotsiridze also noted that fewer brand-new cars are being exported.
Georgia’s overall trade is still growing. Between January and September 2026, external merchandise trade turnover, excluding undeclared trade, reached $20 million, up 9.2% year-on-year. Exports rose 19.6% to $6.1 million, while imports grew 5.3% to $14.4 million.
The trade deficit stood at $8.2 million, or 40.1% of total turnover.
The 10 largest export partners accounted for 67.8% of all exports. Kyrgyzstan led with $650 million, followed by China at $580 million and Azerbaijan at $570 million.
Despite the drop, passenger cars account for $1.5 million, or 24.9% of all exports. Petroleum and petroleum products come second with $810 million (13.2%), and ores and concentrates of precious metals third with $460 million (7.5%).
That concentration is what makes the decline significant. One in four dollars of Georgian exports comes from cars, and much of that depends on a handful of markets and, in Kyrgyzstan’s case, on a trade route tied to sanctions. Cars are also the largest import category, at nearly $2.7 million, or 18.4% of imports, followed by petroleum products at $1.4 million (9.8%) and packaged medicinal products at nearly $530 million (3.7%). The re-export business therefore depends on both a steady supply of vehicles coming in and strong demand abroad.
OC Media reported in September that Iran had risen to third place as a destination for Georgia’s vehicle exports.
In February 2026, the US and Israel started military action against Tehran. As a result, vehicle imports into Iran via traditional maritime routes declined. Geostat’s reporting at the time could suggest that this demand was partially offset by increased re-exports from Georgia.