The collapse of the automotive industry: the expert named the key points. Vika

There are several reasons why automotive production has declined by almost 50%. This was stated by Viktor Medvid, director of William Invest Expert consulting company.

According to him, new cars cannot compete with imports, including used cars. In addition, there is virtually no effective demand for new domestically produced vehicles in the country.

“The issue is that money is very expensive in Ukraine and it is difficult to take out a loan to purchase equipment and upgrade it. Therefore, if we look at the structure, we see a decline not only in passenger cars, but also in trucks, etc. This means that companies are not updating their vehicles or reducing the number of upgrades, and therefore postponing purchases due to lack of funds. That's why production is falling." Medved explained.

It is difficult to predict further developments in the market. The following factors will be fundamental: Ukraine's customs policy, market preferences and buyers' access to cheap and long money to purchase equipment.

“Today, banks have very strict requirements for obtaining loans to upgrade equipment. And, accordingly, the equipment is quite expensive, which makes it impossible to upgrade it systematically. Therefore, most carriers buy used vehicles, which leads to the fact that they hardly ever buy new cars", the expert summarized.