B/a wave demolished the car industry: plants rely on components

Б/У волна снесла автопром: заводы делают ставку на комплектующие

The Ukrainian automotive industry is not the best of times: ten years production collapsed in 90 times, and the cascading collapse of the industry began in 2014, when the country was rocked by revolution and war. Now in the state there is only one company producing cars.

Today the statistics of automobile production is formed almost on the testimony of “Eurocar”, which, recall, is busy with the release of cars of Skoda in technology is large and CKD.

So, in June, according to Association of carmakers of Ukraine (“Ukravtoprom”), produced 672 vehicles, of which 592 of the car (collected on the lines of “Eurocar”), 77 bus (Chernihiv automobile plant, “Chasovoyarskiy buses”, “Cherkasy bus”) and 3 trucks (the”Cherkassk bus”).

Zero production cars are distinguished by the Corporation “Bogdan” and Zaporizhia automobile building plant (ZAZ), which went on a partial preservation of their facilities and shifted production of kits.

In January-June Ukraine produced 3 853 vehicles. But 2017 conveyors Ukrainian enterprises fell 8586 cars that 41 863 units lower than in pre-crisis 2013.

What went wrong in the industry? First, the results of the automobile industry was affected by the abolition in 2015 of the special import duties for passenger car (in this step, insisted in the WTO, which member is Ukraine). Secondly, the loss of traditional markets in the face of Russia (as a reaction to the annexation of Crimea and war in Donbas). Thirdly, the crisis tendencies in the economy and reduction of income. Fourth, the lack of state incentives for industry. Fifth, still badly functioning system of lending. Sixth, the innovations of the tax authorities in which imported cars have become more affordable.

For example, in July, the first registration in Ukraine were 16.5 thousand cars, including used – 9,8 thousand units. Thus, the share of the imported car age in the primary market continues to increase and has already amounted to more than 59%.

“A year ago there was a scheme to import used cars in Ukraine. It is very popular because of its cheapness. This little thing is controlled. The police it almost does, and the insurance company does not check the policies. In the end, it is released to the market, and no one controls, and someone on this earns well. In particular, people in uniform and the former traffic police,” – says the expert of the public organization “Europetrol” Vyacheslav Konovalov.

Among other things, continue to develop schemes to import “EuroBLECH”. Thus, according to the State fiscal service at the end of April, the country was 3.2 million vehicles with foreign license plates that were imported in the mode of “transit” and “temporary import”. Of this number, 317 thousand cars were on the territory of violations, i.e. illegal.

Experts say that under these conditions, our uncompetitive automakers are opening doors only market spare parts and accessories.

As for buses, then the government can change the situation for domestic enterprises by tightening the criteria of age for the vehicles of carriers who, as a rule, do not rush to buy new buses, while the old is still usable. These steps would indeed be useful, given a series of terrible accidents and frightening results of the inspections of the buses.

But for the growth of the truck segment need a revival of business and improving the investment climate are recognized experts. In July, according to “Ukravtoprom”, the primary market has sold 928 trucks, while sales leaders are Renault, Fiat and Mercedes, but the domestic brand sold in the amount of 34 units.

“The countries in which it operates the automotive industry, usually have your a serious market, or have access to foreign markets. For example, Slovakia ranks first in the world on manufacture of cars per capita, but not because the Slovaks are buying so many cars then, they released different brands of machines. In particular, Kia, Hyundai, Peugeot and Volkswagen and sell them around the world. To the auto industry evolved, we need foreign markets”,- says Director of the Ukrainian Association of automobile importers the dealers Oleg Nazarenko.

He said that project the profitability of the plant starts at least with the release of 180 thousand cars a year.

“In Ukraine, with a market of 80 million cars, the remaining number of cars to produce for external markets. The CIS market and Russia we lost, but the EU market is closed to us”,- summed up Oleg Nazarenko.

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