Imports of American cars to Kyrgyzstan reached record levels in January 2024, thanks in part to parallel imports from Georgia.
Kyrgyzstan has become the leading recipient of Georgian exports for the first time, according to Georgia’s National Statistics Service. Almost 17,000 cars worth $618m were imported to Kyrgyzstan.
Georgia is a trading hub of sort for cars from the U.S. going to the countries of Central Asia and the Middle East, due to its geographical location, low tax rates and low cost of repair services. As a result, re-exports of cars take up nearly a fifth of Georgia’s total exports. The majority of Kyrgyz used-car imports made in the U.S. are either brought directly from America or through Georgia.
Since August 1, 2023, the Georgian authorities have imposed restrictions on the export and re-export of American cars to Russia. But, as noted by car exporters, now these cars will be imported to Russia through Kyrgyzstan and Kazakhstan. This ban has had little effect on used-car prices.
