China has established a strong foothold in Central Asia’s electric vehicle (EV) market, and is now looking to expand its influence in the Caucasus, with Azerbaijan serving as its primary entry point. In 2024, Azerbaijan saw a significant increase in EV imports, with Chinese-made vehicles making up 77% of the total, reflecting a clear trend toward electrification. The country’s growing demand for EVs includes not only passenger cars but also electric buses, imported from prominent Chinese manufacturers like Yutong and BYD.

Azerbaijan's rapid adoption of Chinese EVs is supported by favorable government policies, which include exemptions from value-added tax on imported electric vehicles and the removal of customs duties on batteries and charging equipment. These policies have been instrumental in encouraging Azerbaijani consumers to shift from traditional vehicles to Chinese electric models. This market shift also aligns with China’s broader strategy of expanding its dominance in the global EV sector, where it now commands 76% of worldwide sales.

The collaboration between Azerbaijan and Chinese manufacturers is poised to grow further. In 2024, Azerbaijan’s Electrify Azerbaijan LLC signed a deal with BYD for the import of electric buses and the establishment of local EV production. This agreement includes the creation of a production facility in Azerbaijan, which will produce buses and spare parts, creating jobs and boosting local industry. Additionally, Chinese automaker Nio has partnered with Green Car LLC to distribute its EVs in Azerbaijan, marking the expansion of Chinese electric mobility in the region.