The volume of car loans may increase by at least 15-20% this year, according to Serhiy Kyporenko, Head of Car Lending at Globus Bank (Kyiv).
“With some caution, we can expect that in 2024 the terms of car purchases will become even more loyal to the borrower, and the number of cars purchased on credit may increase accordingly,” he said in a press release.
Kyporenko emphasized that further growth in car lending will largely depend on the economic situation, which will primarily affect the ability of banks to raise funds for the development of loan products.
According to him, the reduction of the discount rate last year from 25% to 15% per annum had a positive impact on the bank credit market, which resulted in a significant easing of car loan conditions, with car loan rates, depending on the maturity, down payment and total cost of the car, falling by an average of 2-3 percentage points to 10% per annum.
“That is why since the second half of 2023, and especially in the fourth quarter, the number of cars purchased on credit has increased by almost 30% compared to the beginning of the year,” Kyporenko said.
According to the bank, the role of cooperation between commercial banks and car dealers has significantly increased in the market, which has introduced a number of flexible programs that allow a citizen to obtain a loan depending on his or her income: for a longer period of up to seven years for new cars and 10-12 years for used cars with a minimum down payment of 10% of the car’s value.
It is noted that favorable conditions under trade-in programs have become an important change for buyer-borrowers.
Kiporenko, referring to data from the AUTO-Consulting portal, said that at the end of 2023, the number of cars purchased, including on credit, exceeded 65 thousand, which, in turn, is 62% higher than in 2022.
He said that the overall structure of demand has not changed much over the past year.
“Thus, about 25% of all car loans were issued for electric cars and hybrid cars worth $30-45 thousand, more than 20% of car loans are for premium cars priced at $80 thousand, about 15% of loans were issued for the purchase of cars priced at $18-20 thousand,” the release cites lending statistics.
“In 2024, the ratio of the number of new cars purchased on credit may change slightly: due to the entry of new players into the market, an increase in the number of loan offers with more loyal and flexible credit conditions, which allow more citizens to become owners of new cars, the share of cars priced at $18-20 thousand may increase to 20-25%,” the expert predicts.
The expert also expects an increase in demand for electric cars due to the large number of dealers. He clarified that now in Ukraine the choice of such cars is quite wide, while the vast majority of them consist of new cars imported from China.
The banker believes that in 2024, the most popular car brands will be those that provide customers with variability and flexibility in terms of car purchases, including joint programs between banks and car dealers. In his opinion, an important role is also played by a wide range of models for different financial capabilities, an extensive network of certified car service centers, quality characteristics of the car that are comparable to its price, and the possibility of selling the car in 3-5 years while maintaining up to 40-50% of its original value.
In January, registrations of electric vehicles (new and used) in Ukraine increased 2.8 times compared to the same month in 2023 – to more than 3.5 thousand units, including the share of new ones, which rose to 24% from 23%, Ukravtoprom reported on its Telegram channel.
The bulk of the electric vehicles registered during the month were passenger cars – 3.49 thousand units (new – 840 units, used – 2.65 thousand units), and only four of the 54 commercial vehicles were new.
The top five new electric vehicles on the market in January were formed by: Volkswagen iD.4 – 286 units; BYD Song Plus – 83 units; Honda eNS1 – 80 units; Toyota bZ4X – 56 units; Nissan Ariya – 50 units.
The top 5 used electric vehicles registered in Ukraine for the first time in January included Nissan Leaf – 355 units; Tesla Model 3 – 309 units; Tesla Model Y – 242 units; Volkswagen e-Golf – 178 units; and Volkswagen iD.4 – 169 units.
As reported, in January last year, Ukrainians purchased about 1.3 thousand electric vehicles, twice as many as in January 2022, the share of new cars increased to 23% from 20%.
In general, according to Ukravtoprom, registrations of electric cars in Ukraine increased 2.8 times last year to 37.6 thousand, with new cars accounting for 20% compared to 17% a year earlier.
In 2023, the National Health Service of Ukraine (NHSU) paid UAH 133.8 billion under the Medical Guarantee Program, and 16 million Ukrainians received medical care.
According to the NHSU in its press release, in particular, in 2023, UAH 99 billion was allocated to pay for specialized medical care, UAH 23 billion for primary healthcare services, and UAH 11 billion for emergency medical care.
The NHSU reminds that in 2024, the financing of the PMG will be increased by 12% to UAH 159 billion.
The 2024 PMG covers 44 service packages, including three new packages: “Treatment of infertility with the help of assisted reproductive technologies”, “Treatment of adults and children by organ transplantation” and “Treatment of adults and children by hematopoietic stem cell transplantation”.
At the same time, the NHSU clarified that the National Service will pay UAH 60,324 thousand for one full cycle of infertility treatment.
Structure of foreign exchange reserves as of 30.10.2023
Source: Open4Business.com.ua and experts.news
Insurance company KD Life (KD Life, Kyiv) has increased its authorized capital by 48% to UAH 53.302 million, according to the insurer’s website.
It is noted that the additional issue of shares was registered by the decision of the National Securities and Stock Market Commission on January 19, 2024.
“The company continues to implement new standards and procedures in accordance with the requirements of the new legislation, actively adapts its internal processes and policies, directing all efforts to comply with the new regulations,” the statement said.
KD Life is a Ukrainian company founded in 2007 by KD Group holding.
KD Group Holding is a leader in the financial market of Eastern Europe, with almost 130 years of successful experience in life and risk insurance, financial management and investment funds.
Currently, the company’s services are offered by more than 3 thousand consultants throughout Ukraine.
Dnipro Metallurgical Plant (DMZ, formerly Dniprokoks), a part of DCH Steel of businessman Aleksandr Yaroslavsky’s DCH group, did not produce rolled products in January this year, while in January 2023 it produced 8.8 thousand steel products.
According to information in the corporate newspaper DCH Steel on Thursday, rolling mills PC-1 and PC-2 did not roll metal in January, finalizing and shipping products manufactured in December last year. Thus, in January, the company shipped 3.7 thousand tons of rolled products and 22.9 thousand tons of metallurgical coke to customers.
It is also specified that the main and auxiliary equipment is being repaired in the shops, and the next rolling campaign will start at the last decade of February at the Rolling Shop No. 2.
In addition, it is reported that the production of metallurgical coke in January-2024 increased by 64.4% compared to the same period in 2023 – up to 22.7 thousand tons.
DMZ continues to restore the masonry of coke ovens using the ceramic surfacing method.
As reported, in 2023, the plant increased its rolled metal output by 86.2% compared to 2022, up to 105.6 thousand tons, and coke output by 38.5%, up to 292.7 thousand tons.
In December last year, the plant produced 5.2 thousand tons of rolled steel, down 35% month-on-month. Coke production decreased by 6% to 23.9 thousand tons in November 2023.
In 2022, the plant reduced rolled steel production by 74.2% compared to 2021, to 58.4 thousand tons, and coke production by 56.3%, to 211.3 thousand tons.
DMZ specializes in the production of steel, pig iron, rolled products and products made from them. On March 1, 2018, DCH Group signed an agreement to buy Dnipro Metallurgical Plant from Evraz.
