Azerbaijan's automotive sector has witnessed a downturn in production during the initial four months of 2024, as reported by a source from the State Statistics Committee. From January to April 2024, the country manufactured 948 cars, indicating a decrease of 311 units compared to the corresponding period last year. This reduction in car production is mirrored by a decline in the manufacturing of machinery, equipment, trailers, semi-trailers, and other vehicles.
Decline in Car Production
According to the State Statistics Committee data, Azerbaijan manufactured 948 cars between January and April 2024, marking a decline of 311 units compared to the corresponding period in 2023. This reduction in car production represents a notable setback for the country's automotive sector, which had experienced a significant surge in production in 2023, witnessing a 2.1-fold increase year-on-year to reach 4,233 units.
Decrease in Manufacturing of Other Automotive Products
In addition to the downturn in car manufacturing, Azerbaijan experienced a notable decrease in the production of various automotive-related goods. Machinery and equipment output declined by roughly 17 percent, while automobiles, trailers, and semi-trailers registered a decrease of approximately 22 percent. Furthermore, the production of other vehicles witnessed a significant drop of around 28 percent compared to the preceding year. These declines underscore the challenges faced by Azerbaijan's automotive sector, which may be attributed to various factors such as economic fluctuations, changes in consumer demand, and disruptions in supply chains. Addressing these challenges and implementing strategies to revitalize the automotive industry will be crucial for sustaining economic growth and ensuring the sector's resilience in the face of evolving market dynamics.
Tractor Production Decline
The data also shows a decrease in tractor production during the first four months of 2024, reflecting a 20.5 percent decrease compared to the same period of the preceding year.This decline in tractor production is another indicator of the challenges facing Azerbaijan's automotive industry.
Economic Impact
The decline in automotive manufacturing has affected Azerbaijan's economy, with local enterprises producing machinery, equipment, other vehicles, cars, trailers, and semi-trailers valued at 219.4 million manat ($129 million) in the reporting period, marking a decrease compared to the previous year.
Conclusion:
Azerbaijan's automotive industry has faced a significant decline in production during the first four months of 2024, with decreases in car production, machinery, equipment, trailers, semi-trailers, and other vehicles. This setback comes after a surge in production in 2023, highlighting the volatility of the industry. The decline in tractor production and the economic impact of the decrease in automotive production underscore the need for the industry to address these challenges and find ways to regain its momentum in the coming months.
