Ukraine's Automotive Market Momentum: Consumer Preferences and Shifting EV Import Landscape

Ukraine's automotive market is demonstrating a robust recovery in 2025, with consumers showing a preference for a blend of budget-friendly vehicles and comfort-oriented models. Statistics indicate that approximately half of Ukrainians own a car, with increasing emphasis placed on factors such as price, comfort, and practicality when making choices. Oleg Nazarenko, General Director of the All-Ukrainian Association of Automobile Importers and Dealers (VAAD), highlights that brands like Renault, Skoda Octavia, Hyundai, and Toyota are leading sales. Premium brands such as Mercedes-Benz and BMW also maintain a strong presence, with BMW notably surpassing other cars in its price segment in terms of popularity. This signifies a clear inclination among Ukrainian buyers to invest in premium vehicles, even if it means making savings elsewhere.

Following a significant sales decline in 2022 due to wartime circumstances, the market has seen a gradual recovery. After selling an estimated 50,000-60,000 cars in 2022, sales rose to approximately 65,000 in 2023 and then to around 72,000 in 2024. The record sales year of 2021, exceeding 100,000 sold cars, is likely to be surpassed only after the war concludes, with expectations for even higher sales in 2025 compared to the previous year. Despite a slight 2% decrease in used car purchases during the first seven months of 2025 and a 20% drop in domestic resale, a significant trend is emerging in the electric vehicle (EV) sector.

Regional Perspective

Ukraine is poised for a surge in electric vehicle imports before the end of 2025. This trend is driven by the impending cessation of preferential tax and customs treatment for EVs starting January 1, 2026. Currently, electric cars benefit from exemptions on Value Added Tax (20%) and customs duty (10%). These changes are projected to increase the prices of electric vehicles by at least one-third in 2026. Consequently, importers are attempting to maximize their shipments before the end of 2025 to capitalize on the current situation, which will temporarily boost import volumes. In the initial months of 2026, EV imports are likely to see a significant reduction or even a complete halt.

Analysis

The diversity in preferences among Ukrainian consumers, ranging from budget-friendly to luxury vehicles, reflects the market's resilience and adaptability to changing circumstances. The rise of brands like Renault, Skoda, Hyundai, and Toyota indicates a sustained demand for practical and reliable vehicles, while consumer loyalty to BMW and Mercedes-Benz underscores the importance of perceived value and luxury in the premium segment. The ongoing recovery in new car sales, despite economic challenges, bodes well for the industry's future in Ukraine. The shift towards electric vehicles, spurred by regulatory changes, presents a strategic opportunity for both importers and consumers. Businesses looking to capitalize on this trend should accelerate their import activities before the end of 2025 to leverage the current incentives, while also preparing for the anticipated market shifts in 2026.