Ukraine's auto sales hit 14-year low in March

Ukraine's new vehicles sales slumped to a 14-year low in March due to the ongoing political and economic crisis in the East European country, an industry body said Friday.

The Ukravtoprom Analysis Group said in a report that only 2,579 motor vehicles were sold in the country last month, down 76 percent year on year. In the first quarter of the year, a total of 8,867 vehicles were sold in the country, down 78 percent from a year earlier.

Passenger cars were the primary driver of Ukraine's auto sales in the first quarter, accounting for 88 percent of the total market, said the report.

The weakening demand for new cars in Ukraine was triggered by the conflict in the country's eastern regions, and the conflict also caused financial turmoil which hurt creditworthiness of the banks and sent the exchange rate of the local currency into a free fall.

Ukraine's currency, the hryvnya, has lost more than half of its value against the U.S. dollar since February 2014, resulting in soaring prices for imported vehicles, which account for 89 percent of the Ukrainian market. Endite