American Car Crashes: A Lucrative Export to Russia

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Georgia: A Thriving Hub for the International Used Car Market

Amidst geopolitical tensions, Georgia's second-hand car industry has emerged as a multi-billion dollar success story. Its strategic location has played a pivotal role in this growth.

Exports to Central Asia

Since Russia's invasion of Ukraine, Georgia has witnessed a surge in used car exports to Kazakhstan, Kyrgyzstan, and Armenia, all members of the Russia-led customs union.

Vast Open-Air Carparks

On the outskirts of Rustavi, an industrial town near Tbilisi, vast open-air carparks showcase thousands of vehicles for sale. These cars, often salvaged from accidents in the US, are meticulously repaired and exported to various destinations.

CAI's Role

CAI, a leading car exporter, plays a significant role in this industry. Its team of experts in the US procures vehicles and arranges their shipment to Georgia's Black Sea coastline.

Georgia's Second-Largest Export

Cars are Georgia's second-largest export by value, after copper ore. The industry has contributed significantly to the renewal of the country's car fleet.

Kazakhstan's Demand

Alisher Tezikbayev, a Kazakhstani businessman, travels to Georgia to purchase cars. He organizes auto tours, allowing clients to select their own vehicles.

Loopholes in the System

Despite Georgia's official stance against aiding Russia's evasion of trade embargoes, an investigation by Ifacti revealed loopholes exploited by car dealers on both sides of the Russian-Georgian border.

Repairs and Labor Costs

Zaza Andreashvili, a skilled mechanic, repairs car engines in Tbilisi. The affordable cost of labor in Georgia makes it an attractive destination for fixing salvaged vehicles.

Growing Demand for Electric Vehicles

While most imported cars are petrol or diesel-powered, there is a growing demand for electric and hybrid vehicles. Ukraine is a major market for Teslas, with CAI employing 100 staff members there.

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