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The car market in Ukraine is developing from west to east — statistics

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In 2021, both imports of used cars from abroad and domestic resales of cars with mileage increased. However, along with the increase in the number of car registrations, other processes have taken place — for example, changes in the share of regions in the sales structure. Experts from the Automotive Market Research Institute identified which regions were the most active in the market last year, and followed the changes in the rating over the past three years.

Where most used cars are bought from abroad

The largest number of used cars imported from abroad in 2021 was registered in the city of Kyiv — 9.7% of the total number or 52 thousand in quantitative terms. In second place — the border Lviv region with a share of 8.9% (48 thousand cars). The third place was taken by Kyiv region (7.9%, 42 thousand). Thus, last year in Kyiv and the region for the first time was registered 100 thousand imported cars with mileage, which is 18.6% of the total.

The share of oblasts in the registration of used cars from abroad and the dynamics of their change during 2019-2021

The list of the most active also includes residents of Odessa (6.8%), Dnipropetrovsk (5.9%), Ivano-Frankivsk (5.3%), Kharkiv (5.2%), Rivne (5.2%), Vinnytsia 4.9%) and Transcarpathian (4.8%) regions. Thus, most used cars are bought from abroad by residents of the largest and richest regions, and the development of the car market is directly related to economic growth.

Residents of the western border regions and Odessa have an additional advantage. Geographical location makes them a «gateway» for vehicles from the European Union and America. Well-established processes of purchase, delivery, import and sale allow them to be suppliers of machines for remote regions.

The top 5 most active in the registration of used cars from abroad Service Centers of the Ministry of Internal Affairs looks like this:

  • TSC 5641, Rivne (3.22%)
  • TSC 0541 — Vinnytsia (2.90%)
  • TSC 4641 — Lviv (2.26%)
  • TSC 2641 — Ivano-Frankivsk (2.19%)
  • TSC 0741 — Lutsk district, village Streaming (2.18%)

At the same time, in four centers out of five in 2021, their shares in the structure of the total number of registrations fell.

The import market is developing from west to east

With the entry into force of the new conditions for the import of used cars from abroad in the fall of 2018, it was the western regions that were the leaders in the «fit». However, in 2020 an interesting process of redistribution of this market began, experts from the Institute of Car Market Research say. Thus, for the second year in a row, the shares of Poltava, Sumy, Chernihiv, Kirovohrad, Luhansk, Donetsk, Kherson, Cherkasy, Dnipropetrovsk, Mykolaiv, Odesa and Zaporizhia regions are growing. This means that this market has become clearer and more transparent, and the purchase of imported cars is no longer something exotic for more and more Ukrainians.

Dynamics of regions in the registration of used cars from abroad in 2021

The redistribution of shares in the registrations of imported cars was also affected by the change in the logic of assigning region codes on license plates. Until March 2021, the buyer received license plates of the region in which his place of residence is registered. For example, a Kyiv resident who bought a car in Lviv could immediately register it there and obtain the desired Kyiv AA/KA numbers. However, the rules have changed, and now the region codes are assigned according to the place of registration. That is, a Kyiv resident who buys a car in Odesa and wants to register a car on the spot will receive Odesa VN numbers.

This situation often creates additional problems for buyers: to get a license plate «home» region and not feel «alien among their own», you must first draw up a contract of sale in a trade organization (additional costs), drive the car to your area, and register it in one of the service centers of the region (this is an additional expense of time). It also complicates the provision of turnkey cars from abroad for the automotive business.

Where most buy cars with mileage within the country

In the domestic market, most used cars are also bought in Kyiv — 13.4% in 2021 (126 thousand). In second place — Dnipropetrovsk region (8.9%, 84 thousand), in third place — Kiev region (8.7%, 82 thousand). Domestic resales in Kyiv and the region account for 22.3% — that is, almost a quarter of the total number of cars sold (210 thousand).

The share of oblasts in the registration of domestic resale of used cars and the dynamics of their change during 2019-2021

Odesa (7.1%), Lviv (5.7%), Kharkiv (6.5%), Zaporizhia (4.3%), Vinnytsia (3.9%), Donetsk (3.6%) were also among the top ten. %) and Poltava (3.3%) regions. In general, the top 10 almost completely repeats the rating of Ukraineʼs regions in terms of population, which is logical: more people need more cars.

Most cars during 2021 were registered in the following service centers:

  • TSC 8046 — Kyiv
  • TSC 8045 — Kyiv
  • TSC 8047 — Kyiv region, Kyiv-Sviatoshynskyi district, village Sofiyivska Borshchahivka
  • TSC 5141 — Odessa
  • TSC 4641 — Lviv

The domestic resale market is more predictable

The situation on the domestic resale market is more stable, and changes in it are not as significant as with the import market of cars with mileage, which is just being formed. For example, in as many as four oblasts — Zakarpattia, Vinnytsia, Kharkiv and Luhansk — in 2021 the share in the total number of resales has not changed.

Dynamics of regions in the registration of resale of used cars in 2021

The shares of Zaporizhia, Odesa, Kherson, Kirovohrad oblasts, as well as the city of Kyiv grew the most. That is, to a lesser extent, however, the market of domestic resale of used cars last year also developed more actively in the eastern and southern regions of Ukraine.

Conclusions

The Ukrainian car market is a living organism that grows and develops. Most of the changes are in the import of used cars from abroad. This segment is in the process of formation and scaling. The process takes place from west to east. «Driving» the car ceases to be the exclusive right of only the western regions, although in the structure of sales, these areas still occupy a significant part. This is due to geography and logistics — most cars come to Ukraine from the west. Changing the logic of assigning region codes on license plates has made it difficult to buy a car in other regions and negatively affects the «turnkey car from abroad» service.

Domestic resales of used cars proved to be more stable. There are also tendencies in this area to increase activity in the eastern and southern regions, but this process is less pronounced than in the market of imported cars.

Kyiv and the region should be singled out. The fifth part of the activities on the Ukrainian car market takes place there.

If you want to grow your own car business, now is a good time. Domestic resales will grow with imports, and the market as a whole will grow with economic growth. According to AUTO.RIA statistics, most people choose to buy a car in their own and neighboring region. Therefore, think about its development in regions that show growth, and how to be close to the buyer in general.

Experts from the Automotive Market Research Institute will help in forecasting business and choosing a development strategy. Write to us at [email protected] — we know what to advise you!

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