Auto trends: how electric cars are changing the Ukrainian car market
1 October 2025 17:26
Electric cars on Ukrainian roads are no longer a rare phenomenon, but a common sight. But the “offensive” of electric vehicles may soon be stopped. What has influenced and will continue to influence the development of this segment of the car market, "Komersant Ukrainian" found out.
In August 2025, 9,274 electric vehicles were imported into Ukraine, which is more than twice as many as in the same month last year – 4,146 cars. The State Customs Service has recently provided such data, which shows the continued growth in demand for electric vehicles in Ukraine.
The same dynamics had another manifestation. According to AUTO-Consulting, in August, the share of electric vehicles in the new car market reached 28% for the first time, but in the first half of September, a new record of 36% was already recorded. The reason for this electric car hype is… uncertainty. The extension of the zero VAT on imports of electric cars after January 1, 2026 remains a big question mark. Customs and tax preferences for electric vehicles, making them more affordable, have contributed to the development of electric mobility. But they were not the only ones to have an impact.
How electric cars were introduced to the Ukrainian market
In the first eight months of 2025, 47,307 electric vehicles were registered at the service centers of the Ministry of Internal Affairs. And this figure is almost equal to the number of electric cars that were registered throughout the entire last year.
Georgiy Ovsyannikov, Executive Director of the Ukravtoprom Association, confirms the very rapid growth in demand for electric vehicles with such data.
While in 2021, 8.9 thousand battery electric vehicles (passenger and commercial) joined the Ukrainian fleet, in 2024 the number of new cars in this volume was 51.7 thousand units: 14% in 2021, 20% in 2024,” the expert notes.
Vadym Ihnatov , Head of the Ukrainian Electric Vehicle Association EV-UA, founder and CEO of Lois Motors, the only electric vehicle manufacturer in Ukraine, calls the growth rate of the number of electric vehicles insane and states that there are already almost 190 thousand electric vehicles in Ukraine. He also said that the development of electric mobility in Ukraine took place in several stages.
The first stage was the initial one, starting in 2014-15, when the first electric cars began to appear in Ukraine. These were used electric cars from the US – Nissan Leaf and Tesla. And the market began to develop gradually thanks to enthusiasts, people who believed in electric mobility. Then, starting in 2017, the state joined the process by introducing incentives. This paved the way for the next stage – official sales, when brands such as BMW, Renault, Nissan, Hyundai entered the market with their official electric vehicles. And then, around 2020, the development and import of Chinese electric vehicles began. They are constantly releasing new models. In terms of price and quality, Chinese electric vehicles are more competitive. And this is the third stage,” says Vadym Ihnatov.
He also emphasizes that the state has long been concerned with the development of electric mobility and recalls the adoption of the Transport Strategy for the Development of Ukraine until 2030, the program for energy efficiency and energy saving, where electric mobility was given a large place. In fact, the advantages of electric transport are well known. For Ukraine, it is a reduction in fuel dependence, given that the country imports fuel entirely. And, of course, environmental friendliness. As Vadym Ihnatov reminds us, electric vehicles are 75% cleaner than any car with an internal combustion engine, including hybrids. But not only these “advantages” can determine public policy.
VAT is in question
The preferential regime for electric vehicles currently provides for no value-added tax and no customs duties. There is also no contribution to the Pension Fund at the first registration. The excise tax is set at 1 euro per 1 kWh of battery capacity. Some call it symbolic, for comparison: the largest excise tax for an electric car is now about 150 euros, while the excise tax for a car with an internal combustion engine is somewhere around 2-3 thousand dollars. And starting from January 1, 2026, when importing electric vehicles, you may have to pay a 20% value-added tax. And expect a corresponding rise in car prices.
The VAT exemption is valid until the end of this year and will not be extended.
This warning was shared in mid-July by Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy. Addressing importers of electric cars, he said:
“Have the decency in a country that raises every penny for the army not to raise the issue of VAT exemption for a separate category of expensive goods. Compete for the consumer with quality and marketing, not with skin-in-the-game tax changes,” Hetmantsev emphasized.
However, there are those in the parliament who remind us that the modern world is facing the challenge of a rapid transition to green transport to reduce greenhouse gas emissions, improve the environment and diversify energy sources, and insist on extending the preferential regime. These MPs have registered two draft laws under the numbers 13351 and 13351-1. One of them proposes to extend the import privilege until January 1, 2027, and the other – until the end of martial law and for another year after that. Although… the prospects of such proposals may be indirectly indicated by the fact that the main committee on this issue is the one headed by Danylo Hetmantsev, who has already voiced his categorical position on not extending VAT benefits and even advised supporters of electric mobility to hurry up with the purchase of a car. Motorists heard him.
Vadym Ihnatov, head of the Ukrainian Electric Vehicle Association EV-UA, agrees that the current surge in demand is due to the uncertainty about VAT benefits, but also reminds that duty, excise, zero rate at first registration – all these benefits are still in place because they were adopted indefinitely. He also estimates how the termination of the VAT exemption will affect the market.
In this case, we can expect a 20% rise in car prices. According to a study by researchers at the Western Ukrainian National University, sales are expected to fall by 50% to 70% in total. That is, if, according to my forecasts, 65 thousand electric cars will be registered for the first time this year, then it will be only about 30% at best. And this story will resume only by 2030,” says Vadym Ihnatov.
The head of the Ukrainian Electric Vehicle Association EV-UA also emphasized that the association is in favor of extending the benefits for electric vehicles until 2030.
Why exactly until 2030? Because the transport strategy and the sustainable development strategy are all designed until 2030. And in 2030, in Europe, the rate of transition to electric vehicles should already be at 55%. That is why we need to move in the same direction. Given the fact that by 2035, I hope, Ukraine will already become a member of the EU and we will need to adopt EU laws in any case,” the expert explained.
Not only benefits
The Ministry of Communities and Territories Development of Ukraine has recently announced the start of work on the Concept for the Development of the Electric Charging Station Network. This is officially envisaged by the National Renewable Energy Action Plan until 2030.
According to Deputy Minister Serhiy Derkach, the Ministry is conducting a detailed market study to clearly understand how many stations there are now, where they are located, and what is missing. You can participate in it until October 15, 2025.
The European Union has identified electromobility as a key priority. According to Regulation (EU) 2023/1804, there should be stations every 60 km along the main TEN-T corridors with a capacity of at least 400 kW. This is the standard we should also strive for if we are talking about true integration with the EU,” the official said.
The purpose of the study is to assess the current state of the charging infrastructure market and identify key user needs.
The Ministry of Energy will also create an interactive map of charging stations. According to Vadym Ihnatov , head of the Ukrainian Electric Vehicle Association EV-UA, officials are developing a map of locations where charging stations will be possible.
The idea is to find opportunities to connect charging stations at the expense of the state, and private companies will install and operate charging stations on a commercial basis. That is, it is a kind of public-private partnership story, where the state provides opportunities and assistance, and private business develops them. This is also a way out if we do not have such opportunities, as, for example, in many European countries, where charging infrastructure was developed entirely at the expense of the state,” the expert notes.
By the way, as an example to follow, Vadym Ihnatov mentions Norway, which has a very clear and sustainable policy for the development of electric mobility. It has been planned for many years and does not change like ours. There are fiscal incentives and non-fiscal incentives, there are direct benefits, such as VAT and registration fees, and there are benefits such as free ferry travel and parking in cities. As a result of this policy, according to the Norwegian Road Administration, in June 2025, the share of electric cars reached a record 96.9%.
What electric cars are conquering the Ukrainian market
Four years ago, the electric car market was dominated by American and European cars, and the bestseller was the NISSAN Leaf. Today, according to Georgiy Ovsyannikov, Executive Director of the Ukravtoprom Association, the situation has changed.
The market for new electric vehicles is dominated by China: more than 90% of new electric vehicles sold from January to August were imported from China. The most popular model among new electric vehicles this year is the BYD Song Plus. The main factor behind the growing demand for Chinese electric vehicles is their price. Used electric vehicles are more likely to be imported to Ukraine from the United States – 36%. In this segment, the most popular electric car is the TESLA Model Y,” the expert notes.
According to Ukravtoprom, the top 5 new electric vehicles in Ukraine in August were:
- BYD Song Plus – 358 cars;
- VOLKSWAGEN ID.UNYX – 206 cars;
- HONDA eNS1 – 202 cars;
- BYD Sea Lion 07 – 154 cars;
- AUDI Q4 e-tron – 109 cars.
The top 5 imported used electric vehicles are:
- TESLA Model Y – 827 cars;
- TESLA Model 3 – 651 cars;
- NISSAN Leaf – 562 cars;
- KIA Niro EV – 367 cars;
- RENAULT Zoe – 263 cars.
By the way, not only in Ukraine, the electric vehicle market is increasingly dominated by Chinese manufacturers. For example, BYD’s share of the Spanish electric vehicle market, including all-electric models and plug-in hybrids, rose to more than 10% in July despite EU duties on Chinese-made electric vehicles. This is more than twice the European average and three times Tesla’s 3.3% share.
According to JATO Dynamics, thanks to its wide and competitive lineup, BYD has already outperformed well-known European car brands, outselling Fiat, Dacia and Seat in the UK, Fiat and Seat in France, Seat in Italy and Fiat in Spain.
Author – Sergey Vasilevich
