Georgia's Role in the Journey of Old US Cars to Russia

A growing trade hub for international used cars, Georgia's market dynamics have become closely tied to Russia as vehicles frequently end up in the northern nation despite official embargoes.

The small South Caucasus nation of Georgia is emerging as a central figure in the global used car trade, with a multi-billion dollar industry focused on vehicles largely sourced from the United States. In industrial zones like Rustavi, vast car parks showcase a variety of automobiles, including high-end brands and increasingly, electric vehicles like Teslas. Caucasus Auto Import (CAI), a significant player in this market, imports damaged cars from the US destined for repair and resale. While Georgia officially ceased exporting vehicles to Russia due to sanctions, indirect routes via Kazakhstan, Kyrgyzstan, and Armenia have been identified as loopholes enabling vehicles to reach Russian consumers. Despite this, firms like CAI stress compliance, emphasizing non-involvement with Russia since the onset of Ukraine's invasion. Nevertheless, the geographic advantages and cost-efficient repairs in Georgian facilities bolster its role in the regional trade network. The burgeoning demand for hybrid and electric vehicles further underscores Georgia's pivotal status, with exports extending to war-torn Ukraine as well.