80% of Ukrainian car dealerships are under threat of closure - there is no demand for cars
Kyiv, October 04 (PolitNavigator, Vladimir Raichenko) – Ukrainians have stopped buying cars; within a year, 80 percent of car dealerships in the country may close.
The Ukrainian weekly “Focus” writes about this.
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“The plans of motorists were primarily confused by the significant rise in price of imported cars in hryvnia prices,” the publication reports. – Compared to the fall of 2013, due to the rise in the dollar exchange rate, the prices of car dealerships increased by 30–50 percent. And potential buyers of new cars are scared off by the price of gasoline at 17-18 hryvnia per liter and exorbitant rates on car loans (up to 38 percent per annum).”
This was followed, accordingly, by a collapse in the sales market.
“According to AUTO-Consulting, during the first half of the year, sales of new cars fell by 50 percent compared to the same period last year,” the weekly reports car sales statistics. – The Ukravtoprom association calculated that in January–July 2104, the volume of sales of new cars on the domestic market decreased by 45 percent – 57,7 thousand units compared to 104,2 for the same period in 2013. In July–August, sales were recorded at 6,5–6,8 thousand cars per month, which is 60–70 percent less than a year earlier.”
Taking into account the current situation, car market players predict a far from bright future for it.
“The commercial director of the Dias Ukraine car dealership, Viktor Rashmedilov, believes that in the next six months to a year, 80 percent of car dealerships in Ukraine will close due to unprofitability,” Focus reports. “His opinion is shared by the head of another auto center, according to whom, one of the country’s largest car sellers is already planning to close a number of unprofitable sales points.”
First of all, says the weekly's interlocutor, regional car dealerships that sell no more than 10 - 15 cars per month will be closed, while to cover the costs of maintaining the showrooms it is necessary to sell at least 25 - 30 cars.
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