KYIV. Nov 17 (Interfax-Ukraine) – The new passenger car market in Ukraine in 2017 could expand by 20-35% compared to 2016, analysts from Atlant-M automobile holding have said.
According to the presentation of the holding at a roundtable of the European Business Association (EBA), the market could grow thanks to postponed demand. Ukrainians have not purchased expensive goods for almost two years due to the unstable economic and political situation in the country.
“Before economic crisis and hostilities in Ukraine more than 200,000 cars a year were sold in Ukraine. This is 3.5 times more than now. In 2017, sales could rise by 35% on the current level,” Director General of the Ukrainian Association of Automobile Importers and Dealers (VAAID) Oleh Nazarenko said.
Inflation and the hryvnia exchange rate inflation on the cost of cars, as well as amendments to legislation, in particular, the reduction of the imports duty by 1% and cut excise duty rates on used cars.
According to the holding, in January-October 2016 new passenger car sales in Ukraine totaled 49,562, and this was 38% up year-over-year.
New passenger cars’ share of the total automobile market in Ukraine is only around 11%, while the share of used cars was 2.4%. Internal resale has a lion’s share of the market – 396,165 cars.
Atlant-M anticipates that used car sales would expand in the future thanks to amendments to Ukrainian legislation made in 2016.
