Chinese electric cars flood Ukraine

As Ukraine faces a fuel crisis due to Russian aggression, a significant shift towards electric vehicles is underway, with Chinese manufacturers seizing a growing market share through competitive pricing and technology

Jerry Gan, CEO of Geely Auto Group, unveils the Galaxy Starship, a new technology flagship AI-driven SUV prototype during Auto China 2024 in Beijing, Thursday, April 25, 2024. (AP Photo/Ng Han Guan)
By Grzegorz Adamczyk
2 Min Read

During the fuel crisis caused by Russia’s attack on Ukraine, Ukrainians began switching to electric vehicles (EV). The Ukrainian news portal Prawda reports a noticeable rise in EV popularity, with Chinese firms leading the charge by attracting consumers with affordable prices, appealing designs and advanced technology — albeit with some drawbacks.

According to the Ukrainian Automotive Market Research Institute, Ukrainians purchased 6,300 new and used electric cars in March 2024 alone — double the number from the same period in 2023. By early 2024, the total number of passenger electric vehicles in Ukraine had surpassed 96,000.

February 2024 saw over 1,500 EVs of Chinese origin sold in Ukraine, marking a 5.8 percent increase from January 2024 and nearly twice the sales of February 2022. Similar growth trends were observed by the Ukrainian Automobile Manufacturers Association, Ukravtoprom. For instance, from January to March 2024, over 4,000 passenger cars imported from China were sold, with demand for Chinese-manufactured cars up by 75 percent compared to the same period in 2023.

In the first quarter of 2024, Chinese vehicles accounted for 18 percent of the new passenger car market. A key factor driving Ukrainians towards Chinese models is their cost-effectiveness. For example, the Geely Atlas Pro hybrid can be purchased from an official distributor for just $16,500, while a comparable European Volkswagen ID.4 costs $40,000.

Electric vehicles in China are relatively inexpensive, and when coupled with nearly free customs clearance, they become even more attractive to international buyers. Since 2018, Ukraine has exempted imported vehicles from customs duties and VAT, charging only an excise tax of €1 per 1 kWh of battery capacity.

However, purchasing a Chinese EV comes with additional expenses, such as the need for adapters due to differences in charging standards and connectors, posing challenges for owners due to differences in local infrastructure.

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