Business news from Ukraine

UKRAINIANS REGISTER 11,000 CARS WITH FOREIGN LICENSE PLATES IN ONE MONTH – FISCAL SERVICE

Ukrainians registered 11,000 cars with foreign license plates, which were registered in the temporary importation or transit regimes, in one month, the State Fiscal Service of Ukraine reported on its website on Thursday.
“From November 25 through December 26, 2018, citizens cleared 11,000 vehicles with foreign license plates, which have been imported to the customs territory of Ukraine since January 1, 2015 until the new rules of importation of these vehicles took effect,” the authority said.
Almost 9,600 out of cleared vehicles stayed in the country in violation of the Ukrainian legislation, the State Fiscal Service said.
On December 26, almost 1,400 vehicles were cleared.
As reported, Ukraine’s Verkhovna Rada passed bills cutting the excise duty on vehicles and toughening supervision over the movement and use of vehicles registered in other states. The preferential excise duty (with the 0.5 factor) was set for owners of cars with foreign licenses plates for clearing their vehicles within 90 calendar days.

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UKRAINE STOPS PROBE INTO IMPORTS OF UZBEK CARS

The interagency commission for international trade at a meeting on Monday decided to stop the countervailing investigation into imports of new passenger cars originated from Uzbekistan to Ukraine, the Economic Development and Trade Ministry of Ukraine has said in a press release. “During the investigation, the Embassy of Uzbekistan in Ukraine presented official explanations: according to the presidential decree No. pp-800 dated August 21, 2008 on the creation of an enterprise with foreign investment (CJSC general Motors Uzbekistan) benefits were provided to Uzbek manufacturers, which starting from 2018, are no longer valid,” the Economic Development and Trade Ministry said.
The Ministry of Foreign Trade of Uzbekistan also informed the commission that the main share of exports of Uzbek cars in Ukraine is accounted for small class A cars, which are not produced in Ukraine, the ministry said.
“Thus, the interagency commission for international trade found that the use of compensatory measures is not necessary, and also decided to stop the countervailing investigation regarding the import to Ukraine of passenger cars originating from Uzbekistan without the application of measures,” the Economic Development and Trade Ministry reported.

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PRIMARY REGISTRATIONS OF NEW PASSENGER CARS IN UKRAINE 11% UP IN AUG

Primary registrations of new passenger cars in August 2018 grew by 11% year-over-year and by 10% on July 2018, to 7,300 units, the Ukrautoprom association has reported. The leader of the market in August was France’s with a rise of 39% in sales year-over-year, to 986 cars. Toyota was second again with 983 cars (13% up).
Nissan climbed from fourth to third position in Aug (Skoda was third in July) with 498 cars (32% up).
KIA cars sales grew by 10%, to 477 cars. Hyundai, as in July, was fifth with 452 cars registered (45% more).
The top ten in August also included Skoda with 404 cars (1% up), Mazda with 315 cars (30% more), Volkswagen with 313 cars (40% down), Ford with 294 cars (20% up) and Suzuki with 277 cars (54% up).

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NEW COMMERCIAL CARS MARKET IS STILL GROWING IN UKRAINE

The market of new commercial vehicles in Ukraine (including heavy trucks) in January-July 2018 increased by 17% compared to the same period in 2017, to 7,300 units, according to the Ukrautoprom association. Thus, following the results of seven months, the market reduced its growth rates (in January-May the growth from the same period of 2017 was 22%, in January-June some 24%).
This situation is associated with a fall in sales of commercial vehicles in July this year by 18% from July 2017 and by 25% from June this year, to 928 units.
The highest demand in the July market (like in June) was recorded for Renault cars, which occupied almost 23% of the market with the registration of 211 vehicles (18% more than in July last year). Fiat ranked second with 109 registrations, which is 36% more than last year’s July figure, and Mercedes-Benz ranks third with a reduction of 31% and with 83 vehicles sold. According to the association, the Ukrainian auto brand ZAZ ranks 13th with 21 cars (against 15 units in July of last year and 13 in June of the current year), KrAZ, as in last year’s July, sold 13 trucks. At the same time, Russian brands UAZ (22 cars against 11 in July 2017) and KAMAZ (20 against 10) increased their registration, while GAZ more than halved sales, to 60 units. Belarusian MAZ in July also significantly reduced sales from July of last year, by 55.8%, to 42 vehicles.

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PEUGEOT CITROEN UKRAINE TO LAUNCH DISTRIBUTION OF OPEL CARS IN UKRAINE FROM 2019

The centralized operational management of sales and servicing of Opel cars in Ukraine from January 1, 2019 will be transferred to the official importer of the PSA group in Ukraine – Peugeot Citroen Ukraine LLC.
Ukraine will be the first market in Eastern Europe where Opel will launch activities “under the wing” of the PSA, the importer said in a press release on Monday, June 25.
The company notes that after the acquisition of the Opel brand in 2017, the PSA group began implementing a new strategy for the development of the brand in the European and world markets. The new stage of development of Opel in Ukraine corresponds to the strategic “PACE!” plan, which will restore the financial framework of the brand, improve competitiveness indicators and accelerate the growth of the Opel company.
“The automotive market of Ukraine retains a high potential for further growth, which makes it a good platform for a new stage in the development of the Opel brand. With the new competitive products, offers in after-sales service and a competently built car dealership network, we intend not only to retain existing customers of the brand, but also to win new ones,” the press service quoted CEO at Peugeot Citroen Ukraine Viktor Kordylevsky as saying.
General Auto Group, part of the UkrAVTO corporation, was engaged in the official distribution of Opel cars in Ukraine since 2003.
Currently, the PSA’s brand portfolio includes Peugeot, Citroёn, DS, Opel and Vauxhall, and also the Free2Move car sharing trademark.
In 2018, PSA plans to boost its share on the market of new passenger cars and commercial vehicles in Ukraine to 6.2% against 4.63% in 2017. The share of Peugeot alone is expected to be 3.75%, and that of Citroёn 2.45% (2.75% and 1.88% in 2017, respectively).

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