Ukraine's auto production plunges by half in July

Vehicle production in Ukraine plunged 57 percent year-on-year to 363 units in July, with all segments of the sector showing a drastic slump, the Ukravtoprom Analysis Group said Friday in a report.

Last month, the output of buses saw a largest yearly decline of 77 percent, while the production of passenger cars and commercial vehicles decreased 57 percent and 45 percent, respectively, the report said.

A total of 2,458 vehicles were built in Ukraine in the first seven months of 2016, down 39 percent from the same period a year ago, it said.

Local analysts attributed the drastic decline in the automotive industry in July to a projected drop in the domestic demand on Ukraine-made vehicles due to the country's newly-adopted legislation envisaging the multifold reduction of the excise duty on imported cars.

Ukraine's automotive industry, which used to produce about 400,000 vehicles per year in mid-2000's, has been severely hit by the global financial crisis of 2008 and the current turmoil in Ukraine that started in 2014.

Last year, the country's vehicle production declined by 71.3 percent to 8,244 units, marking the worst performance in more than a decade. Endit