Ukraine
I - 163 - I
Best Prospects for U.S. Exports / Opportunities
Electric vehicles : Ukraine’s electric car market has shown significant growth in recent years. In 2020 the number of electric cars registered in Ukraine has grown by 375% since 2018. . As of August 2020, 43,882 electric vehicles were registered in Ukraine (together with hybrids). Half of them – only electric cars (21,836). An interesting trend has emerged in connection with the pandemic - people have become more interested in hybrids. Ukrautoprom attributes this to the fact that people who are afraid of electric vehicles because of the dependence on charging network, consider hybrid technology more secure because these vehicles can also be filled with regular fuel. Therefore, consumers see fewer risks in purchasing such equipment. However, Ukraine has the biggest number of public charging points compared to its nearest EU neighbors – over 8,500 (a 57% increase in 2020 compared to the same period in 2019). It is estimated that by 2025 there will be over 50,000 EVs registered in Ukraine.
As for Ukrainians' preferences, they mainly prefer used cars. The average age of electric vehicles imported into Ukraine is about 5 years old. Cars under 1-year-old are only 1% of all imported cars in the last year.
Unlike in other European countries, Ukraine's government doesn't provide any subsidies to stimulate electric vehicle sales. The only incentives offered are VAT excise and customs duties exemptions for imported electric vehicles, which will remain in effect until 2022.
In 2019, the President of Ukraine signed the Law of Ukraine No. 2754-VIII which simplifies the rules pertaining to electric vehicles (EV) on Ukrainian roads. The Law, which entered into force in 2020, establishes fines (from EUR 11 to 17) for owners of regular vehicles for parking in, or blocking, parking spaces dedicated for EVs, including the right to tow-away the vehicle to a police compound. Furthermore, according to the Law, parking spaces for EVs are marked with new special signs and EVs receive distinct license plates. These rules are aimed at preventing regular cars from congesting or blocking EV parking lots, including charging stations.
These changes bring Ukraine closer to compliance with international standards in EV infrastructure.
.
For a country with such a low disposable personal income per capita (measuring just over US$2,000 in 2019), the premium segment is fairly large, which points to enduring corruption. In 2019 the three German premium brands, Mercedes, BMW and Audi, controlled 6.8% of the market, with Lexus and Infinity (both Japanese), Jaguar and Land Rover (UK), Porsche (Germany) and Volvo (Sweden) adding another 5.7%.
.