Rise of electric cars in Armenia: What’s driving their popularity?
Popularity of electric cars in Armenia
Electric cars are no longer a rarity on the streets of Yerevan, and their presence has grown significantly. Over the past two years, vehicle sales companies in Armenia have shifted their focus to electric cars, which have become highly sought after. Sales agents report that demand is soaring and are confident that it will continue to rise in the near future.
How is it that car enthusiasts, who once equated engine power, brand, and even car color with social status, have now embraced predominantly Chinese electric vehicles?
According to sales managers, electric cars offer three major advantages: they are more affordable, economical to maintain, and environmentally friendly.
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Why are drivers choosing electric cars?
Last year, Arshak sold his car and bought an electric vehicle. For the past five months, he has been driving it and speaks only of its advantages.
“My car was German-made and had high maintenance costs. Plus, I had been driving it for twelve years, and it was outdated. Problems kept cropping up, and expenses kept rising. On my friends’ advice, I decided to sell it and buy an electric car,” Arshak explains.
With his new car, he has eliminated repair costs. Charging the electric vehicle costs him a maximum of 25,000–30,000 drams per month ($63–76), whereas fueling his old car used to take about 70,000 drams ($180) out of the family budget each month.
“I initially wanted to travel to China to pick out an electric car myself. But after calculating all the expenses, I realized it was better to work with importers. There were good options, and I was able to get a new car for $26,500. So far, I see only positive factors. I’ve heard about problems with electric cars, but I haven’t encountered any myself,” Arshak says.
In his view, the electric car boom in Armenia is largely due to the government’s approach to the issue:
“They are imported without customs duties. Essentially, the government is solving two problems. First, the country’s vehicle fleet is being modernized. Second, there’s a transition to cars that don’t pollute the air or cause harm. And people understand this.”
In numbers
According to a government decision, 7,400 electric vehicles were set to be imported into Armenia in 2024 with a customs benefit, specifically a zero percent duty rate.
Official data shows that, on average, 22 electric cars were delivered to Armenia daily throughout 2024.
As of October 1, the quota for electric vehicles eligible for the zero-duty rate had already been exhausted. As a result, the government revised its decision, allowing an additional 600 electric vehicles to be imported under preferential terms by the end of the year.
Interest continues to grow
Evgenia Nushikyan, a sales manager at one of Armenia’s leading car import companies, personally sold 82 electric vehicles this year alone. She considers this an unprecedented figure and is confident that sales momentum will continue in the coming years.
She highlights past issues with importing cars from the U.S. market, where vehicles often didn’t match their descriptions, requiring costly and time-consuming returns.
“In contrast to electric vehicle markets in the U.S. or other countries, when working with China, our specialists are in direct contact with buyers at dealerships. They provide detailed information about the vehicles. The likelihood of disappointment or choosing the wrong car is practically zero,” Nushikyan explains.
She also attributes the high sales volumes to accessible credit options:
“People can purchase an electric vehicle with a 10% down payment and an interest rate of around 14%. A few years ago, our clients were buying cars at very different price points. Now, electric vehicle prices are generally between $20,000 and $45,000.”
Nushikyan assures that electric cars are both comfortable and cost-effective, which is why she believes they will dominate the Armenian market in the coming years:
“Electric vehicles have powerful engines, modern designs, and innovative digital controls for the interior. Most importantly, they are contemporary products that have undergone extensive testing. Without naming specific brands, I can say that these vehicles vary in quality and class, with features that distinguish them from one another.”
She also notes that electric car buyers are more often women, tech industry professionals, or individuals who already own multiple cars and want an electric vehicle as well:
“Interestingly, these cars have been tested in Armenia’s various climatic zones and conditions, with no problems recorded during trials. Additionally, warranties are provided with each sale.”
Considering the income levels of Armenian residents, Nushikyan believes electric vehicles are an excellent choice for middle-income individuals seeking comfortable, economical cars.
From an environmental perspective, she also sees the importance of promoting electric cars:
“Unfortunately, many buyers don’t mention this or see it as a priority. However, there are cases where affluent clients ask us to sell off their luxury cars and order electric vehicles for the entire family. For 2025, I anticipate even higher sales and more new offerings.”
Quotas for 2025
For 2025, a zero percent import duty has been set for 8,000 electric vehicles.
The State Revenue Committee reminds that to use this year’s quota, customs declarations can be submitted, and a customs order can be registered starting January 1 for importing vehicles into Armenia.
Additionally, under the Tax Code, the VAT exemption on electric vehicle imports will remain in effect until January 1, 2026, with no quantitative restrictions for this benefit.
At the end of last year, the government discussed the limited lifespan of car engines, after which they require disposal. Currently, this is managed under the government’s solid waste management program. However, with the growing number of vehicles, additional resources will be needed to address this issue.
As a potential way to reduce waste volume or delay the disposal process as much as possible, the government considered offering benefits exclusively for importing new electric vehicles manufactured within the past two years.
