Ukraine Autos Report - Business Monitor International - Industry Reports

Ukraine Autos Report

Ukraine Autos Report - Business Monitor International - Industry Reports
Ukraine Autos Report
Published Oct 01, 2016
31 pages — Published Oct 01, 2016
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Following three consecutive years of sales declines, the Ukrainian new vehicle market continues to show strong signs of recovery in ----. -M-- sales figures from UkrAutoProm show a total of --,--- new vehicles sold in the country. ...Although the country has clearly stabilised since the government reshuffle and appointment of Volodymyr Groysman as prime minister in April ----, the momentum of the structural reforms implemented has waned in the last couple of months. Consequently, the IMF has postponed its payment of the third loan tranche worth USD-.-bn, and the government itself has signalled that it will be increasingly difficult to deliver on its ---- reform agenda which guarantees payment of two additional loan tranches worth USD-bn. Accordingly, we estimate that private international investment will remain subdued until the government receives its scheduled IMF loans, as payment thereof signals structural reform progress to international investors. ...The country is also expected to increase the minimum wage by -- in December ----. Taken together, these factors should all contribute to an increase in demand for both new and used vehicles.

...The only positive within Ukrainian auto production is the output from Eurocar, whose Solomonova facility (which produces Skoda branded vehicles) saw passenger car output rise by --.- y-o-y, to -,--- units. This means that Eurocar is now the only passenger car producer in Ukraine, which could leave it well placed to take advantage of the ongoing rebound in demand within the local market over the near term. ...Although the move to cut tariffs will help to develop a used car market within Ukraine, it will also reduce demand for locally-produced new vehicles over the medium term. Further downward pressure on production will come from the fact that supplier factories in the more industrial east of Ukraine will remain economically cut off from car manufacturers in the country s west, and firms will also find it hard to operate in the country s disjointed and unstable business environment because of the unstable security situation. The majority of auto manufacturers operating in the Ukraine remain heavily linked to the Russian market, with a number of domestic vehicle brands, such as Bogdan Motors, also relying on Russian vehicle architectures and brands. ...Vehicle production has faced several years of sustained declines; in ----, the total output in the commercial vehicle (CV) segment stood at about --,--- units but declined to just -,--- units (CVs + buses) in ----. This has created large amounts of overcapacity in the country, rendering much production uneconomical due to a lack of economies of scale and created pent-up demand in the market.

...AvtoZAZ s decision to stop local production has damaged the overall Ukrainian auto production levels over ----. -M-- production figures showed a --.- decline, to -,--- units, although Eurocar (Skoda) saw output rise by --.- , to -,--- units. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Ukraine Autos Report" Oct 01, 2016. Alacra Store. Apr 24, 2018. <>
Business Monitor International - Industry Reports. (2016). Ukraine Autos Report Oct 01, 2016. New York, NY: Alacra Store. Retrieved Apr 24, 2018 from <>
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