In brief
As a burgeoning hub for the global used car trade, the small nation of Georgia imports salvaged vehicles from the United States, revamps them, and exports them primarily to former Soviet states, with many eventually suspected of reaching Russia.
On the outskirts of Rustavi, Georgia, vast carparks—equivalent to 40 football fields—are filled with a myriad of second-hand vehicles such as Mercedes, Porsches, and increasingly Teslas. Caucasus Auto Import (CAI), a major player in this market, sources cars from U.S. insurance write-offs, refurbishing them in Georgia before re-export. The business thrives due to cost-effective repairs and favorable logistics, connecting Europe and Central Asia. Despite official embargoes following Russia’s invasion of Ukraine, statistics suggest that many of these vehicles end up in Russia through re-export routes via Kazakhstan and other nations within the customs union led by Russia. In 2022, for instance, Georgia exported 7,352 used cars to Kazakhstan, with the number rocketing to 39,896 in 2023. Such increases underline Georgia’s strategic role in this global exchange, influenced by its geographical positioning and affordable labor, crucial for refurbishing the damaged imports. As the industry evolves, hybrids and electric vehicles find growing demand, signifying shifts in consumer preferences. In this evolving landscape, Georgia remains a pivotal conduit in the East-West vehicle trade despite geopolitical tensions.
