Business news from Ukraine

GTSOU PLANS TO BUY ALMOST 272 VEHICLES WITHIN A YEAR

Gas Transmission System Operator of Ukraine LLC (GTSOU) will continue the program of equipment renewal by purchasing 272 units of motor vehicles and engineering vehicles during the year.
According to the company, it plans to acquire 122 Reno Duster, 61 Reno Dokker vehicles, 20 passenger buses, two shift vehicles for difficult terrain, four auto labs for electrical measurements, 25 wheeled excavators, five wheeled chain excavators, 13 tracked excavators, seven truck cranes, 18 bulldozers, two drilling rigs and one pipe carrier.
Earlier, it purchased 126 Mitsubishi L200 pickup trucks and eight Toyota Camry through the ProZorro site.
Gas Transmission System Operator of Ukraine LLC ensures uninterrupted operation of the Ukrainian GTS, which is integrated into the European gas transportation system.

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MTIBU INCREASES PAYMENTS FOR UNINSURED VEHICLES BY 23%

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) paid UAH 104.1 million for the owners of uninsured vehicles, which were involved in road accidents without a valid compulsory civil liability insurance of land vehicle owners (OSAGO) policy in January-September 2020, which is 23.5% more than in the same period a year earlier.
The bureau said that the number of payments for uninsured drivers from the victim protection fund of MTIBU increased 22%, to 2,946.
According to MTIBU, the reason lies in a combination of several factors: the low standard of living of Ukrainian citizens, the decline in economic activity caused by the pandemic, insufficient financial culture of the population, the irresponsibility of some drivers and the lack of effective mechanisms to control the availability of OSAGO policies.
In addition, an obstacle to improving the situation is that the employees of the National Police have the right to check the availability of the OSAGO policy only in case of violation of the traffic rules by the driver or if they got into an accident. Also in Ukraine, in contrast to many European countries, the introduction of automatic recording of the availability of OSAGO policies remains at the level of a promising idea, the bureau said.
“After in February 2019, the State Border Guard Service began to automatically check the presence and validity of the Green Card insurance certificate for each driver traveling abroad.., almost immediately we noted a significant increase in the number of concluded international Green Card insurance contracts (by 30-40% monthly),” Director General of MTIBU Volodymyr Shevchenko said, whose words are quoted in the report.
According to him, it is necessary to introduce in a similar way for an automated check of the availability of internal OSAGO policies, which will solve the problem of uninsured drivers on the country’s roads. This requires joint efforts of the legislature, the regulator and the Ministry of Internal Affairs.
According to the report, the number and amount of payments for drivers of privileged categories also increased in January-September 2020. The number of such payments increased by 12.8%, the amount – by 24.9%, to UAH 26.8 million.
During three quarters of this year, the bureau paid UAH 153.9 million from the MTIBU victim protection fund, to which all insurers-members of the bureau make monthly contributions, which is 2.8% less than in the corresponding period last year. The number of payments decreased 13.8%, to 4,500. Such dynamics was caused by a decrease in the volume of payments for bankrupt insurers and payments via returning the base guarantee contribution of the insurer.

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UKRAINIAN VEHICLE MANUFACTURERS PRODUCE 7,265 VEHICLES IN 2019

Ukrainian vehicle manufacturers in 2019 tentatively produced 7,265 vehicles, which is 10% more than in 2018, the Ukrautoprom association has reported.
At the same time, the output of passenger cars last year increased 10.5%, to 6254 cars and all of them were manufactured at the Eurocar factory (in 2018 also, with the exception of one car made at ZAZ), buses production grew by 5%, to 875 units, commercial vehicles and trucks – by 3%, to 136 units (excluding AvtoKrAZ, which has ceased to disclose information about production since August 2016).
According to the association’s statistics, the lion’s share (126 units) in the production of commercial vehicles belongs to JSC Cherkasy Bus, which increased their production by 2.6 times, while ZAZ reduced it by 82.5%, to 15 units.
Cherkasy Bus is also a leader in the production of buses: over the past year, 441 buses were produced (the same as in 2018). Chernihiv Automobile Plant of Etalon Corporation is second. It increased production by 7%, to 202 units, and Chasiv Yar Buses is third (94 buses compared with 107 in 2018).
Another 68 buses were produced by Bogdan Corporation (a year earlier there were 50 units made), ZAZ produced 70 units compared with 45 units in 2018.
The association said that the growth rate of vehicle production accelerated by the end of the year, which was thanks to the results of December, when vehicle production doubled compared with December 2018, to 557 units thanks to an increase of 2.2 times in the assembly of Skoda cars at the Eurocar, to 432 cars.
Only Cherkasy Bus reported on the production of commercial vehicles, where 20 vehicles were manufactured in December.
Last month, bus production increased by 38%, to 105 units, including 60 units made by Cherkasy Bus (compared with 40 a year earlier), the Chernihiv Automobile Plant made 28 buses (15), Chasiv Yar Buses manufactured 11 buses (3), and 6 buses were produced by ZAZ (11).

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DEMAND ON ELECTRIC VEHICLES IN UKRAINE GROWS BY 58%

The primary registrations of electric (used and new) vehicles in Ukraine in January-June 2019 grew by 58% year-over-year, to 3,185 vehicles (2,964 cars and 221 commercial vehicles), the Ukrautoprom association has reported. The share of used electric vehicles was 91%.
Nissan Leaf remains the leader in the passenger electric car segment: in six months 1,550 cars of this model received Ukrainian license plates, Tesla Model S was second (253 registrations), BMW i3 with 189 cars was third.
The electric car FIAT 500e was chosen by 135 Ukrainians, and the Renault Zoe sold 134 cars.
In the commercial segment, the RENAULT Kangoo Z.E has the best result: 206 registrations in six months.

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GREATEST DEMAND IN OCTOBER IS STILL ON RENAULT VEHICLES, REGISTRATIONS OF COMMERCIAL VEHICLES IN UKRAINE 13% UP

The market of new commercial vehicles in Ukraine (including heavy) in January-October 2018 increased by 13% compared to the same period in 2017, to 10,500 units, the Ukrautoprom association has reported. Thus, according to the results of 10 months, the market slightly slowed down the growth rates (in January-June, in particular, it was 24%). In October, the registration of these vehicles showed an increase both compared with the same month in 2017 (by 10%) and compared with September of the current year (by 13.1%), to 1,105 units. In September 2018, there was a drop respectively by 0.5% compared with September 2017 and by 12.5% compared with August 2018, to 977 units.
The greatest demand in the October market was still on Renault vehicles, which were registered 9% more than in October 2017 (163 vehicles).
Fiat ranked second with 121 registrations, a 7% increase from last year’s October figure, while Citroen closed the top three with a more than threefold increase, to 103 units.
Mercedes-Benz with a 40% increase and registration of 91 vehicles was in the fourth position, and Volkswagen was fifth, which increased sales by 56%, to 75 units.
The Belarusian MAZ came next with the registration of 73 vehicles and an increase of more than 43% compared with October last year.
Ukrainian brands ZAZ and KrAZ were respectively the 14th and 17th of the October rating with registration of 21 vehicles (against 12 in October last year) and 17 vehicles (against 35).

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DISTRIBUTOR OF ISUZU VEHICLES IN UKRAINE BECOMES OWNER OF ISUZU UKRAINE

Komtranskomplekt LLC (Kyiv), the official distributor of Isuzu vehicles and spare parts in Ukraine, has acquired 100% of shares in private joint-stock company Isuzu Ukraine automobile company (Kyiv), which sells Japan’s Isuzu trucks. According to a report in the information disclosure system of the National Commission for Securities and the Stock Market, Isuzu Ukraine received the notification on August 26. The deal to sell 25% of the company (the face value of each share is UAH 1,000) was signed in May 2018.
According to the commission, as of late Q2 2018, 80% of shares in PrJSC Isuzu Ukraine belonged to Japan’s Isuzu Motors and 20% to Sojitz Corporation.
Isuzu Ukraine automobile company was founded in 2007 to promote Isuzu-Bogdan buses and trucks to the Ukrainian and CIS markets. Bogdan Corporation held 50% of the shares, Isuzu Motors – 30% and Sojitz Corporation – 20%. In 2013, Bogdan Corporation left the company as a shareholder.

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