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Car market in 2025: what will change?

There is about a month left until the new year — and with the change of date on the calendar to January 1, 2025, a number of already planned changes will take place. Each of which will have a certain impact on the market, individual car owners or businesses whose activities are related to the automotive sector. IDA specialists have collected the main changes that are expected and described each of them.

Introduction of Euro-6 eco-standards

From the first day of 2025, new and used vehicles such as tractors, trucks (of all groups), special equipment (cranes, construction equipment, tow trucks, etc.), buses, as well as new passenger cars submitted for first registration, should comply with the Euro-6 environmental standard.

However, the introduction of the latest eco-standard has been postponed once again — to 2027, although not for everyone. According to the law recently adopted by the Verkhovna Rada, from the new year, Euro-6 will apply only to new passenger cars that are submitted for first registration.

For used cars, everything remains unchanged — Euro-2 remains acceptable for them.

New and used buses, trucks, special equipment, and tractor units can be imported and registered with Euro-5 for the next 2 years.

The last year of preferential customs clearance for electric vehicles

Before a number of laws came into force, customs clearance of electric vehicles was carried out in the same way as for gasoline or diesel cars or trucks. That is, when importing such a car, customs duties, excise duties and VAT were charged, and before registration, a fee to the Pension Fund had to be paid. As a result, each electric vehicle became more expensive relative to its purchase price abroad by at least 35...40%.

Preferential customs clearance, which left only a relatively small excise tax (1 euro per 1 kWh of battery capacity, in practice from 20 to 100 euros per 1 car) allowed this segment to significantly increase its turnover, develop related businesses, and increase the fleet of electric vehicles to over 130 thousand cars, which is more than in some European countries with a population similar to that of Ukraine.

  • Learn more about the electric vehicle fleet in Ukraine — order a suitable dashboard from IDA

However, most likely, these benefits will be “automatically” canceled on December 31, 2025 (except for the first registration fee), since there is currently no initiative registered in the Verkhovna Rada that could extend the validity of these rules. Which, after all, is predictable — the country needs money, and it is unlikely that any of the lawmakers will dare to propose extending “zero customs clearance” for electric vehicles at this time.

New auto insurance rules

To begin with, it is worth saying that all current "autocivilka" contracts concluded and paid for by 12/31/2024 will remain valid until the date indicated in them as the expiration date of the contract. That is, immediately after the New Year you do not need to go to the nearest insurance company office and buy a new policy. But when it does expire, new rules will apply.

The most noticeable change is the increase in insurance payout limits, instead of the current UAH 160,000 for property damage and UAH 320,000 for harm caused to the life or health of the victim, from January 1 next year these numbers will increase to UAH 250,000 (UAH 1.25 million per event) and UAH 500,000 (UAH 5 million per event), respectively.

All contracts will be concluded without a deductible, each policy will provide for the possibility of direct settlement, payments for damaged elements will be made without taking into account their wear and tear (depreciation), the Europrotocol will be able to be used without separate monetary limits, as is the case now (but within the general limits of the "autocivil insurance"). The preferential categories of drivers, who are currently entitled to free support from MTIBU in case of damage to someone elseʼs property, will lose this opportunity, instead they will be offered a 50% discount on compulsory auto insurance policies.

And what about prices? Obviously, they will increase, since insurers will have to include new increased limits, a zero deductible, and an "unlimited" Europrotocol in their estimates. In addition, the new rules provide for the removal of all restrictions on pricing by insurers — they will have the right to set prices at their own discretion, which, of course, will be regulated by the service market itself, because we should not forget about competition.

The fee for the first registration is unchanged this time.

This fee is mandatory upon first registration of new and used passenger cars, except those equipped with electric motors. The rate is 3, 4, or 5 percent of the vehicleʼs assessed value.

Usually, with the arrival of each new year, the size of the subsistence minimum for able-bodied persons, which would determine the range for applying the aforementioned 3, 4, or 5%, changed. However, this time it remained at the “old” level of UAH 3,028, so the “price corridors” remain unchanged for the entire next year (or, if we rely on the current version of the Budget Declaration, even until 2027).

So, this was information about known, planned changes. How they will affect the car market — the team of the Car Market Research Institute will reveal in the next publication, with forecasts for 2025 for our car market.

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