Armenia negotiates with several countries for launching joint production of e-cars

 10:08, 3 January 2024

YEREVAN, JANUARY 3, ARMENPRESS. The first 8,000 e-cars to be imported into Armenia this year will again be exempt from VAT and customs duties pursuant to a regulation on quota distribution within the Eurasian Economic Union aimed at promoting the green economy policy and reducing emissions.

Given the positive results of the incentive in 2022 and 2023, the Armenian government extended the regulation for two more years.

3,486 electric cars were imported to Armenia in 2022, a 1,8% and 12,1% growth against 2021 and 2020 respectively, according to Emma Movsisyan, Director of the Department of Trade and Integration at the Armenian Ministry of Economy.

“As of December 1, 2023, the number of electrical cars imported into Armenia was 4,909. This shows that we have significant results in this area. Every year the number of e-cars that are imported and used in Armenia is rapidly growing,” Movsisyan said.

Most of the e-cars are being imported from the United Arab Emirates, followed by the United States, China, and some quantities from Iran and Georgia.

“In terms of the manufacturing date of the vehicles, we can say that consumers mostly prefer cars of recent years. The overwhelming majority of the imported cars are manufactured in between 2021 and 2023. Both high-class and mid-class cars are imported. Most of the imports are Volkswagen ID.4, Volkswagen ID.6, Honda, Tesla, and in the mid-class segment Nissan LEAF, Chevrolet Volt which cost an average of 8 to 15 thousand dollars depending on the engine power, manufacturing date and other components,” Movsisyan said.

The goal of this initiative is to implement the provisions of the green economy policy adopted by the Armenian government, which seeks to cut diesel fuel consumption and reduce emissions.

Movsisyan said that adjacent infrastructures are also being developed as a result of the imports, the number of charging stations is growing (already 200), more maintenance shops are being opened, which in turn brings investments and new jobs.

“We’ve adopted a policy to significantly increase the use of e-cars both in the public administration system and in the private sector. We also consider launching joint production with famous carmakers in Armenia in the future. We are currently conducting negotiations with certain countries in this context,” Emma Movsisyan said.

The ministry seeks to apply broader measures in terms of infrastructures. It is currently considering potential components that could also be covered in the zero-customs-duty regulation and thereby promote economic activity in the given sector, as well as the use of e-cars.

Interview by Anna Gziryan