Business news from Ukraine

Business news from Ukraine

Imports of passenger cars to Ukraine in 2024 increased by 8% to $4.4 bln

In 2024, imports of passenger cars, including cargo and passenger vans and racing cars (UKT FEA code 8703), increased by 8% in monetary terms compared to 2023, to $4.385 billion.

According to customs statistics released by the State Customs Service of Ukraine, the top three countries from which cars were imported the most were the United States, Germany and Japan, as in the previous year, while imports of cars from the United States increased by 13.2% to $817.9 million, and their share in the structure of car imports was 18.65% compared to 17.78% a year earlier.

Cars from Germany, whose share in the structure of imports decreased by 0.32 percentage points to 15.56%, were imported for $682.16 million (5.8% more), and the share of cars from Japan decreased to 11.3% from 13.9% a year earlier – they were imported for $495.71 million (12% less).

Imports of passenger cars from other countries amounted to $2.389 billion (54.5% share), while a year earlier it was $2.131 billion (52.47%).

According to the statistics of the State Customs Service, in December, imports of passenger vehicles to Ukraine amounted to $389.67 million, which is 3.5% more than in December 2023.

At the same time, last year Ukraine exported such vehicles for $10.1 million, while a year earlier – for $27.9 million, while most often they were supplied to Canada (for $1.82 million), the United States ($1.79 million) and Germany ($1.54 million), while in 2023 – to Georgia, the UAE and Germany.

As reported, in 2024, a total of $25 billion worth of machinery, equipment, and transport was imported to Ukraine, compared to $19.8 billion a year earlier, and $3.5 billion ($2.9 billion) worth of exports.

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Starting from 2025, new passenger cars in Ukraine will be registered only according to Euro 6 standard

Starting from 1 January 2025, customs clearance for free circulation and the first state registration of new passenger cars in Ukraine (both imported and manufactured in Ukraine) will be subject to compliance with environmental standards of at least Euro 6.

This is stipulated by the Law of Ukraine on the requirements for compliance of vehicles with environmental standards, which was adopted by the Verkhovna Rada on December 17, 2024 and signed by the President of Ukraine Volodymyr Zelenskyy on December 30.

The exception is for new passenger cars imported or manufactured in Ukraine before December 31, 2024.

At the same time, as reported, the law postponed until January 1, 2027, the introduction of Euro 6 emission standards for vehicles (new and used) under UKTZED codes 8701 20 (tractors), 8702 (buses), 8704 (trucks), 8705 (special vehicles).

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Toyota became leader in sales of new passenger cars in Ukraine

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.

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One third of passenger cars in Ukraine equipped with modern air conditioning

About one-third of Ukrzaliznytsia’s (UZ) passenger railcars used in summer transportation are equipped with modern air conditioning, while about half are equipped with outdated air conditioners that can operate intermittently, the company’s press service reports.
“Almost 400 Ukrzaliznytsia cars are guaranteed to have a functional air conditioning system: first of all, such cars are part of trains #92/91 Lviv-Kyiv, #106/105 Odesa-Kyiv, #63/64 Kharkiv-Lviv, #12/11 Lviv-Odesa, #29/30 Kyiv-Uzhhorod, #15/16 Kharkiv-Yasinia, #17/18 Kharkiv-Uzhhorod, and a number of other branded trains,” Ukrzaliznytsia posted on its Facebook page on Thursday.
About 650 railcars also have air conditioning, but they are of an outdated modification, so they can operate intermittently.
About 1,400 cars are involved in passenger transportation this summer, the company told Interfax-Ukraine.
When buying tickets, Ukrzaliznytsia urged people to look for the “snowflake” icon, which marks seats in cars with modern air conditioning in the app and on the website. At the same time, they noted that cars with outdated air conditioning modifications are not marked with the “snowflake” icon, despite the physical presence of air cooling systems.
“At maximum air temperatures, cooling in this car may be weak, so we signal this at the purchase stage by the absence of a snowflake,” the company said.
Before the summer transportation season, the railroad repaired air conditioning systems in 168 cars, which helps make traveling more comfortable, Ukrzaliznytsia added.
The temperature in air-conditioned cars should be between +22…+26 ℃, the company said, noting that due to the peculiarities of air conditioning in cars, the systems start working 20 minutes after the train departure, and the air conditioner gains full power when the train is moving at a speed of more than 40 km/h.

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Since beginning of year, demand for new passenger cars in Ukraine has jumped by one and half times

Initial registrations of new passenger cars in Ukraine in January-February increased by 1.5 times compared to the same period in 2023 to more than 10 thousand units, the Ukravtoprom Association reported on its Telegram channel.

According to the report, almost 5.7 thousand new passenger cars were sold in February, which is 51% more than in the same month in 2023 and 29.5% more than in January this year.

“The sales of new cars are only 11% behind the February figure of pre-war 2021,” Ukravtoprom states.

Toyota showed the best result of the month with a 70% increase by February 2023 – up to 858 cars. Renault was the second with 706 units (+64%), and Volkswagen was in third place with 472 units (+53%).

The TOP-5 of the month also included Skoda – 452 units (+38%) and Peugeot – 348 units (+364%).

Renault Duster crossover remains the bestseller in the Ukrainian new car market, with 603 registrations in February.

According to the Association, in February last year, a little more than 3.7 thousand new passenger cars were sold in Ukraine, which is 30% less than in February 2022.

For its part, the AUTO-Consulting information and analytical group in a post on its website calls the February car market’s performance “powerful”: almost 6 thousand passenger cars were sold, which is 58% more than in February last year and 24% more than in January 2014.

According to analysts, Toyota is in the lead, with 15% of all buyers preferring it (906 cars). Renault is in second place (664 cars), which managed to slightly overtake VW, which took second place in January and sold 548 cars in February.

Skoda finished fourth (503 cars), and Peugeot took fifth place (from 10th in January 2024), having doubled its sales compared to January (336 cars).

Analysts say that the premium segment is no longer growing as it was last year, and that BMW, Audi, and Lexus are leading the way.

“Electric cars confidently held 20% of the Ukrainian market in February, and it seems that this is now a new milestone that they will continue to hold for some time,” the report says.

In addition, AUTO-Consulting notes a drop in the interest of Ukrainian buyers in various Chinese unknown “trains”.

As reported with reference to the data of the Ukravtoprom Association, in 2023, the primary registrations of new passenger cars in Ukraine increased by 60.6% compared to 2022 – to almost 61 thousand units, according to AUTO-Consulting, sales increased by 62.4%, exceeding 65 thousand units.

Demand for new passenger cars in Ukraine has almost doubled

Registrations of new passenger cars in Ukraine in October this year increased by 83% compared to October 2022 – up to 5.7 thousand units, and are 0.7% higher than in September 2023, Ukravtoprom reported on its Telegram channel.

According to the association, Toyota continues to hold the lead in the market with a 40% increase in registrations by October last year – up to 929 units, Volkswagen’s second result is 574 cars (three times more), and Skoda (in September – 4th position) took third place, pushing BMW aside, with an increase of 46%, up to 477 units.

BMW’s fourth result is 461 cars (up 3.6 times), and Renault closes the top 5, as it did a month earlier, with 432 cars (+60%).

The top 10 in October 2023 also included: Nissan – 309 units; Hyundai – 240 units; Mercedes-Benz – 224 units; Mazda – 220 units; Peugeot – 200 units.

The title of the month’s bestseller, as in September, went to the Renault Duster with 387 registrations (in October 2022, it was the Toyota RAV4 crossover).

“Ukravtoprom states that in January-October 2023, Ukrainians purchased and registered 49.6 thousand new passenger cars, which is 60% more than in the same period last year.

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