ANALYSIS OF THE UKRAINIAN AUTOMOTIVE MARKET IN THE CONDITIONS OF MARTIAL LAW

Abstract

The article analyzes the Ukrainian automotive market under martial law. To begin with, a study of the volume of imports of new and used cars to Ukraine during the period of martial law was carried out. It is determined that with the beginning the full-scale invasion, the import of new cars to Ukraine fell completely, especially critically in March-May 2022. As for the import of used cars, the abolition of the Ukrainian authorities in 2022 led to a record boom. Next, the dynamics of car prices were studied and it was determined that with the fall of the national currency, there was a significant increase in prices for imported cars. It was determined that the price of cars increased by 55% on average, which ultimately led to a decrease in demand. Having assessed the dynamics of car sales in Ukraine, it was determined that sales volumes for almost all analyzed brands increased by an average of 62%, which was actually caused by the stabilization of the military situation in Ukraine and the establishment of logistics. Regarding the domestic automotive market, we found that, according to Ukravtoprom and AutoConsulting, UkrAVTO PJSC is a monopolist in the Ukrainian automotive market, owning 30% of the Ukrainian passenger car market, while other domestic companies such as AIS PJSC and Bogdan PJSC account for 10% of the market.  We also analyzed the profits of national automakers and determined that during the period of martial law, their profits increased significantly in 2022-2023. This increase in profits was caused by an increase in demand for Ukrainian brands and the actual production of cars for the needs of the Armed Forces. As a result, we have proposed a strategy for the development of automotive production in Ukraine, which will be based on the integrated introduction of technologies, such as AI and special software into production processes. It is determined that the proposed strategy will enable Ukrainian producers to compete with European partners, since, in our opinion, the only disadvantage of the domestic automotive industry is the lack of funding for the development of technologies, which actually hinders its development.