Business news from Ukraine

NEW COMMERCIAL VEHICLE MARKET IN UKRAINE EXPANDS BY 10% IN 2018

The primary registration of commercial vehicles in Ukraine (new and used ones) in 2018 grew by 20% compared with 2017, to 51,500 vehicles, the Ukrautoprom association has reported. The association said that the share of new vehicles was only 25% of primary registrations of commercial vehicles: demand in the segment grew only by 10%, to 12,700 units, while registrations of imported used vehicles rose almost by 25%, to 38,800.
Renault became the leader in new vehicle registrations last year, with 2,429 license plates being issued – 13% more than the year before, Fiat ranked second: 1,327 registrations and an increase of 13%.
Mercedes-Benz closed the top three leaders: 1,047 new vehicles were sold (a rise of 28%).
Renault is leading in the segment of used imported cars: for the year, 9,407 vehicles received Ukrainian registration, which is 30% higher than last year.
The second most popular brand was Volkswagen, which registered 4,941 vehicles (15% more).
Mercedes-Benz is in third place, as in the market for new vehicles, with 4,911 units (a rise of 22%).

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AB INBEV EFES BRINGS U.S. CRAFT BEER TO UKRAINIAN MARKET

AB InBev Efes, a large brewing company, has brought a first batch of U.S. craft beer of Goose Island Brewery to Ukraine.
“The company brought to the Ukrainian market world-famous American brands from the manufacturer of craft beer Goose Island Brewery: Goose IPA and URBAN WHEAT ALE. The first batch is 60 hectoliters,” the company said in a press release on Tuesday.
Two brands of Goose Island Brewery are already on shelves in the Ukrainian MegaMarket, Novus and Silpo retail networks.
As reported, the world’s largest brewing concern Anheuser-Busch InBev (AB InBev) and Anadolu Efes, the largest brewing company in Turkey, completed the merger of businesses in Russia and Ukraine in equal shares late March 2018.
AB InBev Efes is one of the leaders of the Ukrainian brewing market, occupying 30.5% of it.
AB InBev Efes in Ukraine owns three breweries in Chernihiv, Kharkiv and Mykolaiv regions.

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UKRAINIAN ELECTRIC CARS MARKET DOUBLES IN 2018

Initial registration of electric vehicles (new and used) in Ukraine in January-November 2018 almost doubled compared to the same period of 2017, to 4,812 units, the Ukrautoprom association has reported. At the same time, the share of imported used cars, as in the previous year, was 84%. As reported, in the first half of this year, the growth in the electric vehicle market was 50% compared to the same period last year, and in January-October already 89% (the share of used cars on it is 85%).
According to the association, 598 electric vehicles passed primary registration in Ukraine in November, which is 2.4 times more than in the same month of 2017, but 80% of them were imported cars with mileage.
The most popular electric car in the Ukrainian market (344 units) remains Nissan Leaf, BMW i3 cars rank second with the registration of 41 cars, and Tesla Model S ranked third with 34 cars.
Renault Zoe ranked fourth position with 28 vehicles, while the fifth position belonged to Fiat 500e, which was chosen by 24 customers.

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IN UKRAINE E-COMMERCE MARKET GROWS 30% PER YEAR

The Better Regulation Delivery Office (BRDO) assesses growth of the e-commerce market in Ukraine at over 30% every year, IT Telecom Sector Head at BRDO Oleksandr Kurbakov said at a roundtable devoted to e-commerce and smart regulation for the progressive market held in Kyiv. “The e-commerce market in the world is growing at a rate of 23-25% per year. In Ukraine, these rates are much higher – about 30% per year,” he said, citing statistics.
At the same time, Kubrakov said that Ukraine is in the second lowest position in Europe in terms of GDP per capita, the lowest in terms of Internet penetration, and the country is lagging behind the neighboring countries in terms of penetration of bank cards by 10-20%. According to BRDO, the volume of the e-commerce market in Ukraine in 2017 exceeded $50 billion, or 3.2% of the total retail sales. At the same time, the growth rate of e-commerce in Ukraine amounted to about 31%, which is the second highest growth rate in Europe.
“A significant problem for the market is the obligation of the seller to print a fiscal receipt in hard copy at the moment when the money paid for the goods arrive. This practically makes Internet acquiring impossible with payments of more than UAH 7.5 billion per year and cash on delivery in the amount of more than UAH 12 billion,” Kubrakov said. He said that the solution to this problem could be permission to submit receipts in electronic form.

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TAXI MARKET IN UKRAINE ESTIMATES AT UAH 40 BLN A YEAR

The Better Regulation Delivery Office (BRDO) estimates the volume of the illegal taxi market in Ukraine at 93-98% with the market volume being UAH 40 billion a year, head of the Infrastructure sector at BRDO Vladyslav Prytomanov has said during the round table “The taxi services market” in Kyiv. “According to experts, the total volume of the taxi market in Ukraine is UAH 40 billion a year, which are distributed between carriers (UAH 36 billion) and information and dispatch services (UAH 4 billion). At the same time, the level of market shadowing ranges from 93% to 98%, about 95% on average,” he said.
According to BRDO, there are about 220,000 taxi drivers in Ukraine, serving 280 million passengers annually. The average cost of a taxi ride in Ukraine is relatively low compared to other countries and amounts to UAH 60-90 for a trip within the city.
The expert noted that the budget revenues from the taxi market work are 1-3% of the minimum projected.
Speaker of the Association of Responsible Carriers public organization Oleksandr Diachenko, in turn, said that according to a study conducted by GfK, 42.7% of drivers are willing to work with an illegal taxi service if they need to pay 15-20% of taxes for legal work.

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UKRAINIAN ELECTRIC CAR MARKET GROWTH ACCELERATES TO 89%

Primary registrations of electric cars (new and used) in Ukraine in January-October 2018 grew by 89% year-over-year, to 4,214 cars, the Ukrautoprom association has reported.
The share of used cars was 85% – the same as last year.
The Nissan Leaf remained the most popular make in Ukraine: 403 cars of this model were registered in Ukraine in October 2018. The BMW i3 with 38 cars ranked second in terms of the number of registrations and Tesla Model S was third with 27 cars. Renault Zoe (24 cars) was fourth, and FIAT 500е with 23 cars was fifth.
The top ten on the primary market of electric cars in October 2018 also included: Volkswagen e-Golf (19 cars), KIA Soul EV (18 cars), Hyundai Ioniq Electric (15 cars), Mercedes-Benz B-Class Electric Drive (14 cars), and SMART Fortwo ED (13 cars).
In 2017, the primary market of electric passenger cars in Ukraine grew 2.3-fold, to 2,697 units, and the share of used cars was 85%, while in 2016 – 51%.

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