Initial registrations of new passenger cars in Ukraine in July increased by 20% compared to the same month in 2023 and by 24% compared to June this year, amounting to about 6.4 thousand units, Ukravtoprom reported on its Telegram channel.
“This year, more cars were bought only in March,” the statement said.
As reported, in June 2024, according to Ukravtoprom, the market for new passenger cars moved to negative dynamics, decreasing by 8% by June 2023 and by 7% by May 2024 – to 5.2 thousand units.
According to the association, the leadership in July this year continues to be held by Japanese Toyota with 1024 cars registered (almost 5% less than in July 2023, but 20% more than in June 2024).
The second most popular brand, as in June, remains BMW, with a 15.2% increase in sales by June 2024 – up to 628 units. In July last year, the brand ranked fifth in the rating with 385 cars registered.
The third result was achieved by Renault, which improved its June-2024 result by 20.5% to 587 units. In July last year, it was second in the ranking with sales of 564 cars.
In addition, the top 5 in July included Skoda with 378 units registered (against 278 units a year earlier and 493 units a month earlier) and Volkswagen, whose registrations amounted to 334 units (525 units and 269 units, respectively).
According to Ukravtoprom, in January-July, more than 39.2 thousand new passenger cars were registered in Ukraine, which is 21% more than in the same period in 2023.
Experts attribute the revival in the new passenger car market in July primarily to the government’s initiative to tax buyers of new and used cars (including electric vehicles) with a 15% military duty when they first register in Ukraine, which led to an influx of buyers in car dealerships.
At the same time, they did not observe an abnormal rush and “emptying of car dealerships.”
AUTO-Consulting, an information and analytical group, also noted a jump in primary car registrations in July amid information about the intention to impose a military tax. According to the group, registrations of new cars increased by 20% by June 2024 to 6.04 thousand units (which is 14% more than in July 2023).
As reported, experts have expressed the opinion that the imposition of a 15% military tax could cause a collapse in car sales and lead to the loss of entire networks of official car dealers.
On June 18 this year, the Verkhovna Rada registered government bills on amendments to the state budget for 2024 on financial support for the security and defense sector (No. 11417) and amendments to the Tax Code and other laws on taxation during martial law (No. 11416). The latter provides, among other things, for a 15% military tax to be levied on car buyers when they first register their vehicles.
According to Ukravtoprom, in 2023, the first registrations of new passenger cars in Ukraine increased by 60.6% compared to 2022, to almost 61 thousand units, while AUTO-Consulting recorded a 62.4% increase in sales, to more than 65 thousand units.
