Armenia Negotiates With Several Countries on Joint Electric Vehicle Production

As of January 1, 2024, a government decision has come into effect that allocates tariff quotas for the import of electric vehicles into the Eurasian Economic Union (EAEU). According to the decision, physical and legal entities in Armenia have the right to import 8,000 electric vehicles into the country with a 0% customs duty. Value-added tax (VAT) will not be applied either. This package of benefits will be in effect during 2024-2025. Similar benefits were also in place for the import of electric vehicles during 2022-2023. Given the satisfactory results, it has been decided to extend these benefits for an additional two years.

In an interview with Armenpress, Emma Movsisyan, head of the Trade and Integration Department of the Ministry of Economy of Armenia, stated that in 2022, 3,485 electric vehicles were imported into Armenia, marking an increase of 1.8 times compared to 2021, and 12.1 times more compared to 2020. “As of December 1, 2023, the number of imported electric vehicles in Armenia reached 4,909. This indicates that we have achieved significant results in this sector. In other words, the number of vehicles imported and operated in Armenia is sharply increasing each year,” said Movsisyan.

Addressing the import of electric vehicles, the ministry representative noted that the vast majority of vehicles are imported from the United Arab Emirates, followed by the United States, China, and to a certain extent, from Iran and Georgia. “If we talk about the years of production of the vehicles, we can say that consumers primarily prefer newer models. Here we can see that the overwhelming majority of imports consists of vehicles manufactured between 2021 and 2023. Both high and mid-range vehicles are imported, mainly including Volkswagen ID.4, Volkswagen ID.6, Honda, Tesla, and in the mid-segment, Nissan LEAF and Chevrolet Volt. Their market average value ranges from $8,000 to $15,000 depending on engine power, production year, and other components,” Movsisyan added.

This initiative primarily aims to implement the principles of the green economy policy adopted by the Armenian government, which envisions reducing the use of diesel fuel and emissions. Movsisyan pointed out that these vehicle imports also contribute to the development of related infrastructure, increasing the number of charging stations to 200, and expanding repair stations, leading to corresponding investments and job creation. “We have adopted a policy to significantly increase the use of electric vehicles both in public administration and in private operation. We are also considering organizing joint productions with well-known brands in Armenia in the future. In this context, we are currently in the negotiation phase with some countries,” Movsisyan noted.

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