The market of new cars collapsed by 64%. Analytics of the first half of 2022
The Ukrainian market for new cars grew moderately and last year for the first time in 9 years it crossed the barrier of 100,000 cars sold. With the start of the full-scale invasion, sales dropped tenfold. Experts of the Institute of Car Market Research analyzed the statistics sales of new cars during the first half of 2022, described the dynamics and identified the main indicators.
The market of new cars "smelled", but is gradually recovering
In total, from the beginning of 2022 to June, Ukrainians purchased 18,500 new cars. This is 64% less than in the same period last year in 2021.
The absolute majority ( 90.1%, 16.6 thousand units) were brought from abroad, only 9.9% (1.8 thousand units) were passenger cars manufactured in Ukraine.
In January and February, Ukrainians bought about 1.5 thousand new cars every week. After the full-scale invasion began, sales dropped tenfold. In March, only 563 new cars were registered in Ukraine, and in April — 1,278. Sales began to gradually recover at the beginning of May, during this month already 2.7 thousand cars were sold, and in June — almost 3 thousand.
It is noteworthy that the market of new cars during April grew simultaneously with the activation of the used market. Thus, the peak of sales of new cars since the beginning of the full-scale war fell at the end of May, when one of the peaks of the import of used cars from abroad with "zero" customs clearance was observed. That is, segments of new and used cars on the market do not compete, but complement each other.
Cars manufactured in Ukraine — a minimum
There is no full-cycle automobile manufacturing in Ukraine. All vehicles labeled "Made in Ukraine" are manufactured by the SKD method — large-node assembly, from ready-made machine sets brought from abroad.
Even before the beginning of the Great War, the share of "domestic" cars in the structure of new car sales was insignificant. With the beginning of the full-scale invasion, the production of cars in Ukraine actually stopped altogether.
Most of the sales of "domestic" cars from March to June 2022 (826 units) are the remnants of cars previously manufactured in Ukraine. A third of them — 33.3% — were specialized (for the police, ambulances), and not for private buyers.
Are there any chances in the new car market?
Mobility in general, and cars in particular, remain a necessity even in times of war — this is demonstrated by the statistics of used car sales. However, since 2009, Ukrainians buy more used cars than new ones every year. First of all, due to low purchasing power. Only its growth can increase sales of new cars. The market can also be positively affected by the restoration of available financing programs — lending and leasing at moderate interest rates.
As for cars manufactured in Ukraine, as of today, only Transcarpathian " Eurocar " and a number of smaller enterprises that manufacture specialized cars — police cars, ambulances and other special equipment — have resumed work. The work of the Zaporizhzhya Automobile Plant remains under great question, as all products were made from machine sets of Russian origin. Therefore, the number of cars with the "Made in Ukraine" plate will continue to be small.
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