Azerbaijan has emerged as China's most successful automotive market globally, with 78% of vehicles sold in 2025 being Chinese brands—the highest percentage worldwide, according to industry data shared on social media.
The remarkable penetration reflects not just consumer preference but fundamental shifts in global trade networks and geopolitical alignments. The majority of Chinese vehicles entered Azerbaijan through grey market imports rather than official distribution channels, revealing informal trade dynamics that bypass traditional dealer networks.
The phenomenon differs significantly from neighboring markets. Russia, facing Western sanctions, saw Chinese brands capture approximately 60% market share by late 2024. Azerbaijan's even higher figure suggests factors beyond merely filling a vacuum left by European and American manufacturers.
Why Azerbaijan?
The South Caucasus nation sits at the intersection of multiple trade corridors connecting China to Europe and the Middle East. Its position on the Middle Corridor—a key Belt and Road Initiative route—facilitates cargo movement bypassing Russia, making it an attractive transshipment point.
China-Azerbaijan trade relations have deepened substantially since 2020, with bilateral trade reaching $3.8 billion in 2023. Chinese investment in Azerbaijan's non-oil sector has grown, particularly in telecommunications and infrastructure. The automotive surge represents an extension of this economic partnership into consumer markets.
The grey import phenomenon indicates entrepreneurial networks operating independently of official corporate structures. Data shared by Azerbaijan automotive observers shows brands like Chery, Geely, BYD, and Haval achieving market dominance through competitive pricing and features appealing to middle-class consumers.
Geopolitical Implications
In the Caucasus, as across mountainous borderlands, ancient identities and modern geopolitics create intricate patterns of conflict and cooperation. Azerbaijan's embrace of Chinese automotive technology reflects broader regional realignment.
Western brands face multiple challenges: sanctions-related logistics complications, currency fluctuations affecting purchasing power, and reduced dealer network investment. Meanwhile, Chinese manufacturers offer newer models with advanced features—particularly electric and hybrid vehicles—at prices significantly below European equivalents.
The automotive market serves as a visible indicator of geopolitical orientation. Just as energy exports tie Azerbaijan to Europe through the Southern Gas Corridor, consumer goods imports increasingly link it to China. This creates a complex balance as Baku maintains strategic relationships across multiple spheres of influence.
President Ilham Aliyev's government has cultivated ties with Beijing while maintaining relationships with Turkey, Russia, and Western nations. The automotive market reflects this multi-vector approach—consumers make individual choices that aggregate into strategic patterns.
Regional Context
Neighboring Armenia and Georgia show different patterns. Georgia, with its closer Western orientation and used car import traditions, maintains more diverse automotive sources. Armenia, economically constrained and sanctions-affected through Russian connections, shows growing Chinese presence but from a different baseline.
The 78% figure positions Azerbaijan as an outlier even in a region experiencing significant Chinese commercial expansion. It suggests not merely opportunistic filling of market gaps but active consumer preference for Chinese brands' value proposition.
As China continues developing Belt and Road connectivity through the Caucasus, automotive dominance may prove an early indicator of broader economic integration. The grey market dimension, meanwhile, demonstrates how regional trade networks adapt faster than official frameworks—a characteristic feature of Caucasus commerce across centuries.
