Ukrainians are not interested in VAZ, but Mercedes-Benz is popular

Author : Oleksandr Okhrymenko

Source : 112 Ukraine

In February 2016, sales of new Mercedes-Benz cars increased by 13% compared with February 2013
15:00, 10 March 2016

The situation is quite strange. In February, 2013. 13 591 new passenger cars were sold in Ukraine. But in February 2016, when the Association Agreement with the EU was signed, and the reforms were carried out, and Ukraine has made a European choice, only 4201 cars were sold. The fall in sales is more than 3 times, although many people in 2013, and even before, swore that the Ukrainians cannot buy a car, but when we have the Association Agreement with the EU, cars prices will drop immediately. Few people know, but the cars from the EU actually fell in prices. According to the articles of the Association Agreement with the EU, with the January 1, 2016 tax on automobiles from the EU decreased by 1%. Next year it will decrease by 1%, and so for ten years until a January 1, 2026 will not be 0% at all. But most unlikely to be cheaper. Especially as vehicles from the EU are bought by euros, so the devaluation of the hryvnia constantly drives up the price of cars from the EU, and not only from the EU.

Related: Ukrainian food export to EU increased by 16% in January, - Poroshenko

In February of 2016, most people bought Renault, Toyota, Nissan, and Vaz. In February of 2013 the most purchased were VAZ and Hyundai, Volkswagen, Nissan. Although the same VAZ in February 2013 sold 938 units, and in February 2016 only 250 pieces. Even the best sellers fell several times. In any case, buying a new car affects primarily the price or, more precisely, the price-performance ratio. Although, I think, the pricesare higher now. Therefore, the Ukrainians may have and would like to buy a new car, but painfully prices "bite" after all "reforms of hryvnia" from the head of the National Bank Valeria Gontareva.

But not all so sad in Ukraine from the sale of new cars. In February 2016, sales of new Mercedes-Benz passenger cars rose by 13% compared with February 2013. It is not difficult to guess that the demand for new cars Mercedes-Benz comes form persons who are engaged in currency speculation, new public officials who have come to replace the old after lustration workers new bodies to combat corruption and, in general, those who time their bearings in "a whirlwind revolutionary events "and do not forget to get a "warm place near the feeding trough".

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Sales of Mercedes-Benz shows the real state of reforms in Ukraine. Indeed, in the context of the economic collapse there is always an opportunity to capitalize on the chaos and the redistribution of property. Therefore, it can be long and tedious to tell how changed the face of the Ukrainian authorities and Ukrainian as the state officials have stopped to take bribes. And you can just look at the sales of Mercedes-Benz, and then everything will become clear, without slogans and rallies.

And a few words about the domestic automobile industry. Now in Ukraine ZAZ produces only truly domestic car, where the use of domestic parts is more than 50%. All other automakers produce vehicles such as "domestic", but there is tiny proportion of the localization. It was believed that the devaluation of the hryvnia will spur the purchase of Ukrainian vehicles produced by Porsche. But so far too early to rejoice. In February2016, 141 VAZ cars were sold, while in February of 2013 826 cars were sold. Many advocated the devaluation of the hryvnia as a stimulus for import substitution, while forgetting that many of the materials for the production of imported cars, and most importantly, the energy for the production of metal and various chemical products are only imported.

Related: Ukraine topped by Economic Growth Index in 4th quarter of 2015

Related: Level of shadow economy in Ukraine decreased to 40% of GDP

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