Business news from Ukraine

Business news from Ukraine

7% MORTGAGE DOES NOT AFFECT VOLUME OF HOUSING SALES IN UKRAINE

The mortgage program, which is being implemented by the government at the initiative of the president of Ukraine through the Entrepreneurship Development Fund, did not affect housing sales, Viktoria Volkovska, the director general of the Finance and Investment Management Association (FIMA), has told Interfax-Ukraine.
According to FIMA research, 53.8% of surveyed managers of construction financing funds did not notice the impact of “mortgage at 7%” on sales and do not expect it in the future. At the same time, 38.5% still hope that it will have an impact on the volume of construction and sales. Only 7.7% are optimistic about the program and consider it as the beginning of active growth in the industry.
“Some 38.5% of respondents see the reason for the not very successful start of the “mortgage at 7%” as the conditions of the program do not suit the borrowers,” Volkovska said.
At the same time, 30.8% of respondents indicated that the terms of the program do not suit lenders and developers, and 7.7% simply believe that the program does not work.
“The fact that borrowers cannot pass financial scoring at the bank because of their salaries in envelopes is not considered a problem,” the expert emphasized.
The FIMA study is based on an online survey of construction finance fund managers, conducted following the results of the first half of 2021.
The Finance and Investment Management Association (FIMA) was established in May 2020. It unites 41 financial companies-managers of construction financing funds in Kyiv, Lviv, Odesa, Dnipropetrovsk, Khmelnytsky and Kharkiv.

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STELLANTIS GROUP (PEUGEOT, CITROЁN, OPEL) INCREASES CAR SALES BY 35% IN UKRAINE

The Stellantis group in Ukraine (Peugeot, Citroёn, Opel, DS Automobiles) sold 4,689 cars in January-June of this year, which is 35.17% more than in the same period of 2020, increasing its share in the Ukrainian market of new passenger cars and light commercial vehicles to 8.35% from 8.29% a year earlier, the press service of the group told Interfax-Ukraine.
At the same time, the press service of the company states that in general, sales in the car market during this period also increased by more than a third – by 34.2%, to 53,800 units.
“The automobile market of Ukraine in 2021 shows a constant growth in sales. The deferred demand from 2020, the opening of car dealerships after the lockdowns, the debut of numerous new products, and the development of corporate sales had a positive effect,” the group said in a press release.
At the same time, passenger cars accounted for about 90% of sales on the market (or 48,600 units), commercial – almost 10% (or 5,200 vehicles). Private buyers bought 64% of cars, corporate clients – almost 36% of total sales.
According to Stellantis in Ukraine, while maintaining the current dynamics of market growth, 2021 may end at a milestone: more than 100,000 cars. The company’s success in selling its brands is associated with an active marketing and advertising policy, participation in exhibitions, the constant introduction of new models, the development of corporate sales and related services.

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SALES OF NEW PASSENGER CARS IN UKRAINE UP BY 30%

Initial registrations of new passenger cars in Ukraine in June 2021 increased by 21% compared to the same month in 2020 and by almost 36% compared to the “pre-COVID” June 2019, to 8,800 units,” Ukrautoprom reports.
According to the association’s information on its website, compared to May of this year, the demand for new passenger cars increased by 4%.
The most popular brand in June was Toyota (a year ago – Renault) with 1,296 sold cars and an increase of almost 25%.
Renault ranked second with 986 cars (less by 15% from June 2020).
The third place, as in June last year, was given by Ukrainians to Kia, having purchased 742 new cars – 10% more.
The fourth result is again with Skoda – 609 cars and an increase of 27%, and, like a year ago, Hyundai closes the top five with an increase in registrations by 11%, to 441 units.
In addition, last month, the top ten most popular brands included Nissan, which rose from the 9th in June 2020, with 391 units (more by 68%), and VW, which took the seventh position, managed to move from the 20th position in June last year due to the growth of registrations by 3.7 times, to 384 units.
This is followed by Peugeot – 383 units (more by 17%); Chery – 369 units (129%); Mitsubishi – 367 units (71%).
Ukrautoprom notes that in the first half of this year in Ukraine, the first license plate was received by 48,400 new passenger cars, which is 30% more than in the same period last year.

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BOSCH IN UKRAINE IN 2020 INCREASES SALES BY 7% TO EUR 130 MLN

Bosch in Ukraine in 2020 increased its sales by 7% compared to 2019, to EUR130 million, CEO of Robert Bosch Ltd. Vitaliy Bulda has said.
“A year ago I spoke about the result of 2019, which became the largest in terms of turnover and profitability (a growth of 34% in turnover), but last year was the largest in terms of these indicators since the beginning of the company’s existence. Although 95% of the company has been quarantined since mid-March due to the pandemic, our warehouses, service and training centers were open 24/7, and a lot of effort was invested in communications,” he said at an online press conference.
Ihor Khazan, the director of the Heating Appliance department (Bosch and Buderus equipment), said that last year the trade turnover in this direction increased by 12% (in euros).
At the same time, more than 120 projects in civil construction were implemented, more than 50 – in commercial construction and more than ten – in industry, and in general, the number of implemented projects increased by 30% from 2019.
According to him, among the key ones are a boiler house with a capacity of 16 MW on fire-tube boilers with very low emissions in the Fayna Town residential complex (Kyiv), a boiler house of 1.6 MW in the LvivTechCity innovation park, a boiler house with a capacity of 15 tonnes of steam per hour for a LinkSel dry yeast plant being under construction in Lviv.
Khazan noted that since 2020, there has been an increasing demand for condensing equipment in housing construction: construction and development companies are increasingly using condensing boilers, which significantly reduce the consumption of natural gas, electricity, reduce harmful emissions, and in private houses, the demand for household condensing boilers and heat pumps is growing.
The director of the department of power tools, Oleksandr Hryniv, noted that 170,000 power tools were sold in 2020, which is 3% more than a year earlier, while 100 new products were offered.
He clarified that more than 30% of sales of power tools came from online sales, which were actively developing.
According to the director of the department of auto parts and equipment, Volodymyr Matusevych, in 2020 the increase in the turnover of this direction amounted to 20% from 2019, which was also very successful.
He noted that the development of the Bosch Auto Service network continues: today there are 100 stations in Ukraine (including Bosch Diesel Service).

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SALES OF NEW COMMERCIAL VEHICLES IN UKRAINE GROWS BY 58% IN MAY

Sales of new commercial vehicles in Ukraine (including heavy trucks) in May this year increased by 58% compared to the same month last year, to 1,071 vehicles, and in January-May the demand for them increased by 55%, to 5,175 vehicles, according to the Ukrautoprom association. According to the association’s website, at the same time, sales of these vehicles in May decreased by 15% compared with April 2021. The greatest demand last month, as well as a year ago, was for Renault vehicles, which covered 28% of the new commercial vehicle market – 298 vehicles were registered, which is twice as much as in May last year.
The second place is taken by Belarusian MAZ – 104 registrations and an increase of 76% (in May 2020, the fourth place in the rating), the third place belongs to Fiat, which has 103 vehicles (less by 2%) and a decrease by one line in the rating.
According to the association’s statistics, Peugeot commercial vehicles, which occupied the third place in May 2020, moved to the fifth place in May this year with a drop in sales by 10%, to 63 vehicles.
Compared to last year’s May, sales of Iveco increased significantly from 19 to 42 vehicles, Volkswagen – from 13 to 34 vehicles, Opel – from five to 30 vehicles, and registrations of Russian GAZ increased from nine to 23 vehicles.
The association also provides statistics on bus sales (including minibuses) in May, according to which the initial registrations of these vehicles increased by 2.2% compared to May 2020, and compared to April this year – by 2.1 times, to 190 vehicles.
At the same time, Citroen consolidated its leadership, increasing registrations in May to 90 buses compared to the absence of brand registrations in May 2020 and 27 vehicles in April 2021.
Volkswagen is on the second place with 26 buses sold versus two in April this year and no sales in May last year.
The third place is taken by Renault minibuses (17 vehicles versus four in May last year).
In May last year, the top three included Ford, Peugeot, and MAZ (in May 2021 it was not included in the top ten).
Ukrainian brands in May 2021 took: the fifth place – Ataman buses with ten buses, the seventh place – Etalon with eight buses, and the tenth place – ZAZ with three registered buses.

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SERVICE ENTERPRISES OF UKRAINE INCREASE SALES IN Q1

The volume of sales of enterprises in the service sector of Ukraine in the first quarter of 2021 amounted to UAH 237.7 billion, which in comparable prices is 1% higher than the level of the fourth quarter of 2020, the State Statistics Service has said.
According to the report, the volume of services sold to the population amounted to 21% of the total volume of services rendered.
The State Statistics Service reminded that in the first quarter of 2020 the volume of sales of service enterprises grew by 23.1%.

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