|                                                                                                                                                             |  | AUTOMOTIVE MARKET GROWS IN GEORGIA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|**BISNISHome PageSearchBISNISEmbassyReportsCountryReportsIndustryReportsPublicationsSourcesof FinanceLeadsand EventsExchangeRatesState ExportsOtherSources** |  | May 1998by David ChantladzeGeorgia has a small but growing market for imported automobiles.  American vehicles are popular
in this market, but parts and accessories are scarce.  Over the last five years, several foreign car
makers have opened dealerships in Georgia and are importing new vehicles.  U.S. exporters of
parts and accessories have a good opportunity to establish themselves in a market that is likely to
grow as Georgia's economy benefits from Caspian Sea energy development.The Market
The number of imported vehicles registered in Georgia has increased significantly over the last
three years, according to the Georgian Ministry of Internal Affairs.  The number of non-NIS
vehicles registered with the ministry grew from 13,555 on January 1, 1996 to 32,300 two years
later.  Of the existing stock of Soviet-era vehicles, 25 to 30 percent are more than 15 years old
and will soon have to be replaced.  Used cars compose a large portion of Georgia's motor vehicle
imports, although there is a market for new and luxury vehicles as well.The most common imported passenger cars in Georgia are manufactured by BMW (6,700
vehicles currently registered), Mercedes (6,000), and Ford (3,500).  Chrysler products,
especially its "Jeep" models, have a smaller but still significant piece of the import market (these
statistics do not include vehicles operated by international organizations, diplomatic missions,
foreign companies, and NGOs, which use mostly American and Japanese four-wheel-drive
vehicles such as Ford, Chrysler, Toyota, Mitsubishi, and others).  Most used cars are imported
from Germany by private individuals and are sold at low profit margins through informal channels. 
Vans have recently become very popular vehicles for public transportation.  Currently, all vans
brought into Georgia are imported used from Germany.Despite the popularity of American vehicles, there are at present no specialized service centers to
repair them.  Georgian mechanics frequently service American vehicles, but many report having
difficulty obtaining parts.  Car repair companies are also eager to import damaged vehicles to
repair and resell in Georgia and neighboring countries.Fleet Operations
Georgian Taxi & Bus Company, a joint venture between a private Georgian company,
Consolidated Automotive, and the public-sector Tblisi Transport, imports, operates, and
services taxis and other public transport vehicles in Tblisi.  Georgian Taxi & Bus operates a fleet
of Mitsubishi "Lancer 1300" compact sedans and possesses the exclusive rights to new taxi
licenses in Tblisi, as well as airport operations.  Currently, the company is introducing an initial
fleet of 200 vehicles, of which 80 will be station wagons to be used at Tblisi International Airport. 
Georgian Taxi & Bus may also take over a minibus operation in Tblisi.  If it takes over this
service, as many as 1,000 very old Soviet-era minibuses will eventually be replaced.Prices for most used foreign vehicles fluctuate between $3,000 and $7,000.  For used Russian
Ladas, prices run between  $800 to $3,000.  New and luxury vehicles are also available on the
informal market, where prices for new cars are a bit cheaper than in the official dealerships.In recent years a number of Georgian companies have become authorized dealers for imported
motor vehicles.  For the most part, these dealers sell and service West European, Japanese, and
Korean vehicles.  Their early success in establishing relationships with foreign manufacturers
makes them important as potential partners for U.S. exporters of auto parts, accessories, and
supplies.  A number of these firms are listed above.  For more information, visit BISNIS Online
at www.mac.doc.gov/bisnis/isa/ggauto.htm.David Chantladze works for BISNIS in Tblisi.This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)