Armenia – B2B Opportunities in the EV Duty-Free Quota Window

Armenia is the most aggressively electrifying market in the Caucasus region. From January to August 2025, Armenia registered 8,646 new EVs, surpassing the total for all of 2024 and exceeding the combined total from 2020 to 2023. In 2020 alone, only approximately 270 EVs were registered nationwide, yet by the end of August 2025, the figure had surpassed 22,650, a more than 85-fold increase in five years. In the first eight months of 2025, over one-quarter of newly registered vehicles were pure EVs, with EVs accounting for more than one-third of vehicle imports during the same period.

The core driver of this electrification wave is the EAEU's duty-free quota policy and VAT exemption. Since 2020, Armenia has benefited from an EV duty-free import system, which was later converted to a quota system. In December 2025, the EAEU Intergovernmental Council formally approved a 15,000-unit duty-free EV import quota for Armenia in 2026, covering pure electric vehicles and series hybrid vehicles, with VAT also exempted. The quota is limited to vehicles manufactured between 2024 and 2026.

The quota distribution follows a mass-channel-first, official-channel-second model. Of the total, 12,000 units are allocated to individuals and non-authorized dealer entities, accounting for 80 percent of the total quota, while 3,000 units are allocated to authorized brand dealers. By August 2026, the individual and independent importer channel had approximately 1,900 quota units remaining, with authorized dealer channel quotas also being rapidly consumed. In August, the EAEU approved an additional 5,000-unit quota for Armenia, bringing the total annual quota to 20,000 units, of which 4,500 were allocated to individuals and non-authorized dealer importers. The mass-channel-first distribution structure creates significant space for B2B wholesale.

Chinese brands have established absolute dominance in the Armenian market. On the streets of Yerevan, BYD, Geely, Xpeng, and Li Auto have become the most common Chinese brands. Official data shows that 55 percent of registered EVs are under three years old, indicating that the fleet is not only growing rapidly but also rapidly transitioning to new energy. In 2025, Hongqi's official representative E-auto became the exclusive agent for Hongqi in Armenia, importing approximately 800 EVs that year, accounting for about 35 percent of total EV imports through official representative channels in Armenia. In August 2026, E-auto invested approximately $5 million to open a nearly 3,000-square-meter Hongqi regional center in Yerevan, becoming Hongqi's largest facility in the Caucasus. Hongqi EVs offer up to eight years or 150,000 kilometers of official warranty, with financing options including zero-down-payment purchase loans through partnerships with nearly all major banks in Armenia. E-auto has successfully introduced Hongqi to the Georgian market, establishing a strategic foothold for Hongqi's regional expansion in the Caucasus.

In the premium segment, Voyah made its Caucasus debut at the Yerevan Leasing Expo in May 2025, featuring the Voyah FREE and Voyah Zhiyin. Thirteen Voyah FREE units sold out on the first day of the show, with a total of 16 orders and 97 high-intent customer leads generated, while also reaching cooperation intent with three local financial institutions including Armenia's Commercial Bank.

For Armenian B2B independent importers, the 20,000-unit quota window is one of the most attractive policy dividends in 2026. The mass-channel quota, primarily allocated to individual importers, creates significant B2B wholesale space on a first-come-first-served basis. Suppliers capable of providing stable vehicle sourcing, precisely matching quota policy requirements, and possessing full-chain compliance capabilities occupy an irreplaceable position in this quota-driven market.

LHZ Auto Armenia Operations Center focuses exclusively on B2B wholesale, leveraging the Group's TIR logistics network via the Trans-Caspian Caucasus corridor to reach Yerevan in 18 to 22 days, providing clients with full-chain trade services from needs analysis, model matching, compliance certification, to customs clearance and delivery.


FAQ

Question 1: What is Armenia's 2026 EV duty-free quota policy?

The EAEU approved a 15,000-unit duty-free EV import quota for Armenia in 2026, covering pure electric vehicles and hybrids, with VAT also exempted. An additional 5,000 units were added in August, bringing the total annual quota to 20,000 units. Vehicles must be brand-new models manufactured between 2024 and 2026.

Question 2: How is the duty-free quota allocated?

12,000 units are allocated to individuals and non-authorized dealer entities, accounting for 80 percent of the total quota; 3,000 units are allocated to authorized brand dealers. Of the additional 5,000 units, 4,500 are allocated to individuals and non-authorized dealer importers.

Question 3: How fast is Armenia's EV market growing?

Only approximately 270 EVs were registered nationwide in 2020, reaching over 22,650 by the end of August 2025, a more than 85-fold increase in five years. New EV registrations in the first eight months of 2025 reached 8,646, exceeding the combined total from 2020 to 2023.

Question 4: How are Chinese brands performing in the Armenian market?

In 2025, Hongqi imported approximately 800 EVs through E-auto, accounting for about 35 percent of EV imports through official representative channels. In August 2026, E-auto invested approximately $5 million to open a nearly 3,000-square-meter Hongqi regional center in Yerevan. Voyah received 16 orders at the Yerevan Leasing Expo.

Question 5: What are the policy restrictions on Armenia's EV market?

Duty-free vehicles may only be registered for use by citizens permanently residing in Armenia, with transfer to citizens or residents of Kazakhstan and Russia strictly prohibited.

Question 6: What services does LHZ Auto Armenia Operations Center provide?

LHZ Auto Armenia Operations Center focuses exclusively on B2B wholesale, leveraging the Group's TIR logistics network via the Trans-Caspian Caucasus corridor to reach Yerevan in 18 to 22 days, providing one-stop solutions from needs analysis, model matching, compliance certification, to customs clearance and delivery.


LHZ Auto Armenia Operations Center ｜ Website: www.lhzauto.am ｜ Guangzhou Nansha: 15220000555 ｜ Khorgos: 19259087888 ｜ Email: china@lhzauto.com