History

The Association “Ukrautoprom” was organized in 1998 on the initiative of the leading enterprises and organizations of the motor-car industry in Ukraine, supported by the Ministry of industrial policy with the aim of representing their interests in defining the strategy of the development of the automobile-building, creating the legal basis for the state support and stimulation of this major economical field.

In 1997 there was a peak of the recession of the production of motor-car vehicles, which was reduced by 28 times in comparison with 1991. One of the reasons was the state imperfect policy which led to inflating the market with waste motor-car machinery, the low cost of which made the Ukrainian machinery lose the competition. The industry had no levers to stimulate investments for modernizing the available and generating the new capacities to produce up-to-date models of motor-car machinery.

Under these conditions the Association “Ukrautoprom” initiated measurements to create a favourable climate to draw investments for development of the enterprises of the automobile-building, and also for introduction of tariff regulation of the importation of motor-car vehicles with the aim to satiate the inner automobile market with new machinery, mainly of the Ukrainian production.

In close collaboration of the Association with the Ministry of industrial policy and other organs of legislative power the Law “On stimulation of the production of cars” was prepared, approved and moved in to the Ukrainian Parliament. The Law was approved on September 19, 1997 and improved by making changes and additions in September and November 2001. Further the legislative basis for the development of the automobile industry and regulation of the automobile market of Ukraine was considerably widened by way of adopting legislative acts worked out with the active participation of the Association “Ukrautoprom”.

Having received the legislative support, the automobile industry of Ukraine drew considerable amounts of investments for its development, and since 2000 it has secured a swift rise of the output volume. With the assistance of the Association “Ukrautoprom” there had been prepared the investment programmes of the Zaporizhya, Lviv, Lutsk motor-car plants, the Kremenchug assembling plant and the “Energoavtomatica” Ltd., which were approved by the Cabinet of Ministers on January 1, 2005. The enterprises had made use of the analytical materials on the formation of the motor vehicles market in Ukraine, which are regularly elaborated by the Association “Ukrautoprom”. The total amount of the investments contributed into the statute funds of these enterprises is 250mln USD.

Apart from that, the Ministry of industrial policy had worked out and approved the programmes of creating production capacities and working places at the CJSC “Eurocar” and the “Borispol avtozavod”, “KrASZ” Ltd, the “Anto-Rus” plant and others, which gave the enterprises the possibility to export the spare parts for the production and assembling of the motor vehicles at the zero customs duties. The realization of these projects involves 450mln USD from the home and foreign investors. Thus the total amount of the investments into the industry equals nearly 700mln USD, and, taking into the account the reinvested return, it will reach above 1bn USD.

In 2007 the overall output volume of the motor vehicles made up to 403 000 units. With this index Ukraine entered the top 10 biggest motor-car manufacturers in Europe. Alongside with that, a qualitative improvement of the produce of the automobile industry has taken place. The bigger part of the motor vehicles made in Ukraine meets the international quality standards to a considerable degree. It was reached due to the close cooperation with a number of the well-known companies: Volkswagen, Chevrolet, Opel, Skoda, Isuzu, Hyundai, VAZ, Tata and others.

The exhibiting activities of the Association as organizer of international automotive shows favoured those achievements too. Given the “Ukrautoprom” Asociation is a member of the International Organization of Motor Vehicle Manufacturers OICA, these exhibitions are run under the aegis of this influential organization.

In compliance with the decision at the sitting of the Cabinet of Ministers (the Record № 49 on 28.11.2007) the Association “Ukrautoprom” was awarded the Honour Diploma of the cabinet of Ministers for the considerable input into the development of the automobile industry.

The Association’s further activity is aimed at formation of favourable conditions for the industry according to the strategy put forth in the Concept of the development of the automobile industry and regulation of the automobile market for the period to 2015, which has been approved by the order of the Cabinet of Ministers on August 3, 2006.