Lure whether Ukrainians with cheap loans to buy domestic cars?

Themselves automakers offer at least temporary protectionism and lowering the tax burden …

to support the Ukrainian automotive industry must renew a line of consumer lending at 5% per annum, said recently, Prime Minister of Ukraine Yulia Tymoshenko. But to do so, she says, will be possible only after the presidential election.

Meanwhile, the Cabinet of Ministers promised to provide 100 thousand Ukrainian disabled vehicles. The prime minister said at the end of 2009 the C1000abinet of Ministers of Ukraine has prepared a three-state programs, one of which provided support 100 thousand Ukrainian disabled vehicles in 2010. According to Tymoshenko, this agreement was reached with companies from South Korea and China, which will have government guarantees, together with JSC "Zaporozhye automobile plant" to produce these vehicles for the joint configuration.

by another program - "School bus" - is planned to manufacture 200 buses and more than 50 thousand cars for the needs of rural and village heads, as well as the needs of medical facilities in the village.

in Parliament as a bill to renew 13% of the first additions to the customs duty on imported cars.

State"s desire to "take wing" auto industry experts explain the different motives: from political lobby to rescue workers. What is clear is that concessions are not pushing very impressive performance by industry. Thus, according to one of the greatest actors of the automobile market of Ukraine, Bogdan Corporation, in 2009 she released 14.393 thousands of cars that, in 6,1 times less than that of 2008 (88.316 thousand). The overall trend of the domestic automobile industry is also not impressive.

previously reported that the Ukrainian automanufacture in 2009 in a sharp decline in the market, the lack of domestic support and encourage buyers has fallen by more than 80% - in January-November the Ukrainian automotive industry produced 67.229 thousand vehicles, which is only 16, 4% rate in 2008, including 63.885 thousand cars.

From the standpoint of economic nationalism, state support of automobile industry is justified. According to general director of LLC "Eurocar" Marina Yakovleva, determining for the Ukrainian automobile industry will be the first quarter of 2010. From his results, and will depend, will show whether the car market will continue its growth or stagnation. In any case, the growth rate in 2010 will not exceed 20%, according to Yakovlev.

"Importers are currently feeling a lot better than the manufacturers, because they are not connected bank liabilities resulting from substantial investments in production facilities and the provision of manufacturing jobs - she commented on The Day the market situation. - Target State - define priorities in economic development and the rules for market operators, in accordance with its stated priorities. And most importantly, that these rules were clear and unchanging in quite some time continuum, which is especially important for investors. "

The idea of the government to start lending at 5% per annum for the purchase of domestically produced vehicles, Yakovlev believes, it could significantly stimulate the growth of consumer demand, providing stabilization of the general political and economic situation in the country.

"This is confirmed by the results of the implementation of similar programs in American and European markets. For example, the British Government has allocated the largest automobile manufacturers in the country 1.5 billion dollars in state guarantees for loans, which gave rise in car sales 57%, while in the whole Europe, sales increased by 31%, "- she argues.

car market is on the bottom, so the system without radical measures to stimulate the changes should not expect, believe, and in association Ukrautoprom. "According to our forecasts, the average monthly sales of passenger cars in the current year will be within the 13000 pieces. Will be affected by seasonal factors, but that variations within 10%", - reported in the association.

Therefore, Ukraine needs to just take at least some steps to support the domestic automobile industry. After analyzing the global experience in comb1000ating the global crisis, the most effective measures to improve the producers association called cheap credits for manufacturers, real value-added in their country and, above all, to exporters, reducing the tax pressure on enterprises that create and modernize manufacturing capacity; stimulate sales of national products through public procurement, as well as stimulating consumer demand for products of national manufacturer.

But, again, will determine whether ordinary Ukrainians to buy domestic cars, which have already become accustomed to much better quality and comfort of foreign cars? At this in "Ukravtoprome" answer that today the Ukrainian manufacturers produce mainly cars of world-famous and popular brands of transnational automotive companies under strict quality control of their representatives.

"But today, imported cars more competitive in our market than cars produced in Ukraine, due to cheaper credit enjoyed by our foreign colleagues and the direct financial support provided to them by their state," - stated in the Association.

idea of the Government"s concessionary lending to consumers of domestic products is one of the tried and proven steps that must operate in parallel and systematically with other measures to stimulate the manufacturing process, believe in "Ukravtoprome. But at the same time add that our state is unable to provide direct financial assistance to automotive industry, adequate to that which was provided to nearly all automakers worldwide. Therefore propose that the State at least reduce the tax burden on the production and temporarily introduce protectionist measures in relation to domestic products.

- Last year, Ukrainian automanufacture declined by more than 80%. A growth rate in the current does not exceed 20%, experts say.

- determining for the Ukrainian automobile industry will be the first quarter of 2010. From his results, and will depend, car market will continue its growth or stagnation, certain market participants.

- analyzing the international experience, the most effective measures to improve the automotive experts call cheap credits, reducing the tax pressure, as well as stimulating consumer demand and sales of national products through public procurement.

Natalia Bilousova, Alex Sawicki

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