High prices have long been one of the main reasons for the low demand for electric and hybrid vehicles. However, statistics show that Ukrainians are increasingly choosing these vehicles despite the war.
When choosing a new electric car, buyers prefer models made in China. The fact is that over the past few years, many versions with a range of up to 500 kilometers have appeared in the Middle East, and their prices have fallen due to increased competition in the market.
Among used electric cars, Ukrainians prefer the Tesla from the USA (which is often shipped to Ukraine after traffic accidents) and the Nissan Leaf from the EU countries. According to the Automobile Market Research Institute, the purchase of new and used electric cars in November 2023 set a new record – 6,200 units, an increase of 190% over last year.
According to the Ukrainian Automobile Industry Association, sales of hybrid vehicles in October 2023 exceeded pre-war figures for the first time. Almost 1,800 of these vehicles were registered during the reporting period, a record number for the past 22 months.
Boom in electric vehicles
According to statistics, the electric vehicle market in Ukraine is growing at a frantic pace. Not long ago, only 8,541 vehicles had been registered in the country by the end of 2021. As of January 1, 2023, according to the data of the Main Service Center of the Ministry of Internal Affairs, their number had reached 46,830.
In less than a year, the number had almost doubled to 83,116 units by the end of November 2023. Data from the Institute of the Automotive Market shows that the proportion of electric vehicles among all passenger cars registered in Ukraine in the same period rose from 8.4% to 16.6% over the past year.
Zero tariffs and VAT exemptions have helped to increase demand for electric vehicles. For example, only excise duty is payable on import (1 euro per kilowatt-hour of battery capacity) – up to a maximum of 100 euros per vehicle. Another reason is the emergence of models with a range of 300–500 kilometers, which are not much more expensive than vehicles with internal combustion engines (ICE). Rising fuel prices have spurred demand.
Among the new electric cars, the VW ID.4 is leading the way in terms of sales in 2023. This model with a range of up to 600 kilometers has been on the market for three years.
In the used electric car segment, Ukrainians prefer the Nissan Leaf – a car with a relatively small range (200 kilometers) but at an affordable price. Depending on the year of manufacture and condition, prices range from 10,000 to 20,000 US dollars.
Price stimulates demand
Thanks to the low cost of battery production, China has managed to make electric cars as affordable as possible. The Volkswagen ID.4 is produced in almost identical versions in three countries: the USA – for the American market, Germany – for Europe, and China – for the rest of the world.
The Chinese version is popular in Ukraine, where it is delivered by unofficial dealers. The delivery and customs clearance costs start at 25,000 US dollars, while the cost in Europe would be over 42,600 euros. In the USA, it starts at 42,000 US dollars.
Against the backdrop of growing interest in electric vehicles, the size of loans is also increasing. The Ukrainian National Savings Bank noted that customers who chose to finance an electric vehicle had the greatest demand for the Volkswagen ID.4, while the greatest demand for a hybrid vehicle was for the Toyota RAV4.
“Against the backdrop of a deficit and rising fuel prices, the recovery of car loans was followed by the first significant increase in demand for electric car loans in 2022. Even the possibility of power outages did not stop this trend.” ‘For the second year in a row, we have observed a dynamic increase in the share of electric and hybrid cars in new car sales, which is reflected in credit sales,’ said Anton Timoshenko, Deputy Chairman of the Board of Directors of Ukraine’s National Savings Bank.
Delivery of used Teslas
Despite the popularity of new Chinese electric vehicles, the Ukrainian market is driven by used electric vehicles. Tesla is clearly leading the way here. In 2021, Ukraine imported 454 such vehicles, 1,100 in 2022 and 4,669 in 2023.
The most popular models are the more economical Tesla Model 3 and Tesla Model Y, of which more than 700 were delivered in November 2023 alone. Most Ukrainians buy cars that have been repaired after road accidents. The car sales website auto.ria has almost 3,200 Tesla offers. Of these, only 600 have not been in a traffic accident, as the sellers claim.
The popular Tesla Model 3 costs between 25,000 and 40,000 US dollars, depending on the equipment. In the USA, they are usually bought at insurance auctions for 10,000 to 15,000 dollars cheaper. In October, Ukrainians bought 433 used Tesla Model 3s, 226 Tesla Model Ys and 192 Tesla Model Ss in the USA. Most of these road-safe Teslas entered Ukraine from the EU.
Market growth cannot be stopped
In October 2023, China announced that electric vehicle sales had reached a record high. Despite the end of the 11-year subsidy program in 2022, monthly sales increased by 29%. From January to September, the global electric vehicle market grew by 34%.
In Ukraine, despite the war, the popularity of electric vehicles is still growing, while China is actively occupying the domestic market. Ukrainians are not deterred by the lack of warranties and services, nor by the limited number of fast charging stations.
Car sales in Ukraine in the first four months of 2024
In the first four months of 2024, Ukrainians imported 118,100 used and new passenger cars, as reported by Ukravtoprom.
Ukraine imported the highest number of passenger cars from Germany, totaling over 23,600 units. The United States and China also made it into the top three exporters of cars to Ukraine.
Top 10 car supplier countries:
1. Germany – 23,608 cars;
2. USA – 19,289 cars;
3. China – 12,044 cars;
4. Japan – 12,009 cars;
5. Korea – 6,170 cars;
6. France – 5,900 cars;
7. Slovakia – 5,878 cars;
8. Mexico – 5,240 cars;
9. United Kingdom – 5,149 cars;
10. Czech Republic – 5,071 cars.
Overall, the customs value of the imported cars amounted to over 1 billion 544 million hryvnias.
According to State Statistics, Ukraine imported 21,400 electric cars (5,500 new and 15,900 used) in the first four months of the year.
The total customs value of this import amounted to $476.3 million. The highest number of new electric cars were imported from China – over 4,700 units valued at $111.2 million.
Top 5 suppliers of new electric cars:
1. China – 4,767 units;
2. Japan – 242 units;
3. Belgium – 151 units;
4. Germany – 139 units;
5. United Kingdom – 78 units.
More than a third (38%) of used electric cars were imported from the USA – nearly 6,000 units valued at $102.2 million.
Top 5 suppliers of used electric cars:
1. USA – 5,967 units;
2. Germany – 2,614 units;
3. Korea – 1,775 units;
4. United Kingdom – 1,739 units;
5. China – 1,251 units.
