AADA report: challenges and responsibilities

The AADA General Meeting took place last week. Due to the restrictions imposed in the country due to the special quarantine regime, some members of the association participated in the live meeting, and the rest joined them "online" via the Internet.

The first item on the agenda was the Board's report on the activities of the association for the past year after the AADA meeting on June 4, 2019 Chairman N.Zarbaliyev and Board of Directors’ member V.Bayramov made reports. It was noted in the report that the activities of AADA on the basis of the approved strategic plan can be considered satisfactory until the pandemic. Thus, during the reporting period, extensive discussions began on the state of the automotive sector, the growth of used car imports, the consequences of the obsolete country's car fleet and related topics, and discussions on this topic have increased in the media. Problems in the field of automotive business and transport were brought to the attention of official government agencies and proposals prepared by AADA to improve the situation were submitted. As a result, discussions began between the authorities and the media reported on the issue. AADA proposals to limit the length of stay of cars with foreign license plates in the country have been implemented. AADA's proposals to restrict the import of used cars are being discussed within the government, and the idea of a 7-year restriction has been voiced by customs. AADA's proposals for the promotion of environmentally friendly vehicles have been discussed in relevant government agencies. Unfortunately, this year's coronavirus pandemic has created problems for the automotive sector and the development of the AADA, as in all areas. In this regard, the union must make appropriate adjustments to its action plan.

Speaking at the meeting, Ramin Musayev, head of the association's PR and Communications Department, gave a mini-presentation of the association's official website aada.az, which was launched in April. He noted that so far the site operates only in the Azerbaijani language, but after the members of the association provide all the necessary information, the English version of the page will be launched.

The AADA's work plan for the near future and the post-pandemic period was then discussed. It was noted that official car importers are also responsible for the implementation of the "State Program on Road Safety in the Republic of Azerbaijan for 2019-2023" approved by the Decree of President Ilham Aliyev dated December 27, 2018 AADA members expressed concern over the recent transport of crushed and unusable cars from neighboring Georgia to the country by large trucks. The artisanal restoration and sale of such cars to the public is a serious threat to traffic safety and the environment. At the meeting, it was decided to send letters to the customs and standardization bodies, the Ministry of Economy and Environment on this issue.

The AADA's work plan for the near future and the post-pandemic period was then discussed. It was noted that official car importers are also responsible for the implementation of the "State Program on Road Safety in the Republic of Azerbaijan for 2019-2023" approved by the Decree of President Ilham Aliyev dated December 27, 2018 AADA members expressed concern over the recent transport of crushed and unusable cars from neighboring Georgia to the country by large trucks. The artisanal restoration and sale of such cars to the public is a serious threat to traffic safety and the environment. At the meeting, it was decided to send letters to the customs and standardization bodies, the Ministry of Economy and Environment on this issue.

At the same time, the importance of using educational materials and social videos to enlighten the population about the dangers of using old and unusable cars was stressed.

At the same time, it was noted that car dealers are deprived of the opportunity to offer new cars to the population at affordable prices. This is due to high customs duties, excise duties on imported cars, as well as unfavorable car loan terms imposed by banks. Recently, proposals for higher excise taxes and taxation than cars belonging to the category of luxury goods have been published in the media. According to AADA members, it is wrong to think that the new tax will bring additional funds to the state budget. Today's taxes and duties on car imports are so high that the next increase could only result in zero sales, the collapse of the entire business sector in the country, and the abolition of the distributor-dealer institution. This means the closure of the network of official representations, consisting of numerous car dealerships and service centers, the closure of many jobs, the reduction of financial resources paid to the budget and social funds. Instead, it is inevitable that a "black" market will develop, which is based on personal interests, is not interested in security and environmental issues, and constantly tries to evade taxes. According to the latest research, the total annual turnover of the car and spare parts market in the country is close to one billion dollars. Of course, official and unofficial importers have a share in this indicator...

As each of these issues is the subject of a separate study and discussion, the meeting once again instructed AADA to intensify its efforts to coordinate with government agencies.