12:13 08.12.2015

Multifold decline in excise duty on used cars to destroy Ukrainian automobile production - Bogdan

Multifold decline in excise duty on used cars to destroy Ukrainian automobile production - Bogdan

Ukrainian automobile production being almost mothballed pending the stir up on the new car market could never be resumed if the bill on the multifold decline of excise duties for used cars is passed, the Bogdan Corporation has said.

"With retaining of current excise duties we forecast a small rise on the new car market to 52,000 units, and the resumption of production could be seen in 2017," Bogdan Spokesman Serhiy Krasulia said.

He said that passenger car lines are mothballed, while specialists at the plant are designing specialized vehicles that can be used in the Anti-Terrorist Operation (ATO) zone.

"Today the main thing is to retain production and skilled specialists reorienting production in anticipation of positive changes on the market," Bodgan Plant Director (Cherkasy) Vladyslav Sopit said.

He said that at present the plant is ready to mass production of multifunctional armored vehicles Bars, four-wheel driven vehicles to carry military personnel and cargos.

Krasulia said that large sums are invested in the creation of new models today, while the adoption of the populist bill would result in the reduction of payments to the budget, taking into account the halt of automobile production and the plunge on the new passenger car market.

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