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BMI View: This quarter, we continue to target a 25.2% increase in new vehicle sales for 2016, but warn
that sales growth may slow in 2017 because of the still-challenging economic and political backdrop.
- We believe that rising wages and falling inflation should increase demand for both new and used
passenger cars over the coming two years.
- Commercial vehicle sales should find support from an improving picture for fixed investment, which
should enable businesses to invest more in fleet renewal.
- The July 2016 move to cut the excise tax levied on imported used vehicles will help to develop a used car
market within Ukraine, but will also reduce demand for locally-produced new vehicles over the medium