Page 45 - UKRRptAug21

9.1.2 Automotive sector news
New car sales increased by 30% during the first half of this year,
compared to the same January-June period last year, reports Ukravtoprom, the vehicle industry association. Last year, despite the Covid-induced recession, car sales dropped only 3%, compared to 2019. Of the 48,400 new cars sold this year through June, the leading brands were: Toyota, Renault, KIA, Skoda and Hyundai.
Ukrainian car makers which has seen production falling to 1% of the 2008 peak of 424,000 cars now.
Used car imports surged 40% in the first half of this year, compared to January-June of last year, reports Ukravtoprom. Of the 195,500 used cars imported, the top three brands were: Volkswagen, Ford and Renault. Due to a lowering of import duties and reduced bureaucracy, used cars accounted for 80% of first time registrations in Ukraine during the first half of this year. With new car sales increasing by 30% to 48,400 during January-June, Ukraine is on track to import about 500,000 used and new cars this year.
Culminating a three-year effort, yesterday the Rada gave final approval to two bills designed to stimulate in Ukraine the manufacture of electric cars, components and chargers. For the next five years, VAT taxes are suspended on the import cars powered by electricity, methane or biogas. For the next 10 years, VAT taxes are suspended on the import of equipment to produce electric cars and components. Corporate income taxes will be waived for companies that produce electric vehicles, chargers, motors and lithium and lithium-ion batteries for electric cars for the next fifteen years.
45 UKRAINE Country Report August 2021 www.intellinews.com