After the VAT refund: Sales of Chinese cars in Ukraine fell by 15%
27 May 10:12
After several years of rapid growth, sales of Chinese cars in Ukraine have begun to slow down. In the first quarter of 2026, car imports from China fell by more than 15%, although the overall market for new passenger cars remained virtually unchanged. At the same time, Chinese brands continue to dominate several segments. Analyst Ostap Novitsky discussed this in a comment to Delo.ua, as reported by "Komersant Ukrainian".
Main factors behind the sales decline
In the first quarter of 2026, 1,885 Chinese-made passenger cars less than three years old were registered in Ukraine, Novitsky said. For comparison: a year earlier, this figure stood at 2,232 cars.
At the same time, the overall new car market shrank by only 2.5% during this period—from 16,666 to 16,253 units.
The analyst attributes the sharper decline in the Chinese segment specifically to two reasons:
- the return of the full VAT rate on electric vehicles starting January 1, 2026;
- the tightening of rules for exporting cars from China that were originally intended for the domestic market.
One in nine cars in Ukraine comes from a Chinese assembly line
Despite the decline, the share of Chinese-made cars in the Ukrainian market remains high.
As of the first quarter of 2026, it accounted for 11.6% of all first registrations of new and nearly new passenger cars.
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The analysis is based on VIN codes with a PRC geographic index, Novitsky clarifies. In other words, this includes not only purely Chinese brands but also international brands manufactured in China. Among them are Audi, Tesla, and Volkswagen models assembled in China.
BYD is increasing sales, while Zeekr has declined
BYD is showing the strongest growth among Chinese brands. In April 2026, the company increased registrations in Ukraine from 292 to 411 vehicles compared to the same month last year.
Sales are also growing for:
- Chery — from 60 to 87 cars;
- MG — from 37 to 74 vehicles.
Separately, the expert notes the emergence of new players. In particular, the Chinese versions of Mazda immediately received 52 registrations, and BYD’s new sub-brand—FangChengBao—started with 45 vehicles.
At the same time, the premium Zeekr brand has lost significant ground: sales fell from 187 to 71 cars. According to Novitsky, the VAT refund has hit the high-end segment of premium electric cars the hardest.
Sales of so-called “gray” Chinese versions of traditional brands also plummeted. For example, sales of Chinese-made Hondas fell from 84 to 20 vehicles.
“Buyers are increasingly turning away from artificially adapted brands in favor of authentic Chinese-engineered products,” the analyst notes.
Chinese cars are bought almost exclusively new
Ukrainians view China primarily as a source of new automotive technologies, rather than as a market for cheap used cars, says Ostap Novitsky.
In the first quarter of 2026, the following were imported into Ukraine:
- 1,851 new Chinese-made cars;
- only 382 used cars.
That is, over 82% of this segment consists of cars with zero mileage.
The analyst adds that even those cars that are formally classified as used due to the peculiarities of Chinese export legislation are often, in fact, still new—”in factory wrap and with zero mileage.”
The Chinese have effectively taken over the electric SUV market
The Chinese auto industry holds its strongest positions in the electric crossover and SUV segment. In the first quarter of 2026, Chinese-made vehicles were dominated by:
- electric vehicles — 1,115 units;
- plug-in hybrids and EREV models — 419 units.
Together, this accounts for over 81% of all registrations of Chinese cars in Ukraine.
In contrast, classic gasoline models received only 342 registrations, and there were just four diesel cars.
Crossover and SUV models dominate the sales charts. The leaders were:
- BYD Leopard 3 — 207 cars;
- BYD Sea Lion 06 — 182 cars;
- Zeekr 001 — 134 cars.
“Chinese manufacturers aren’t interested in cheap city hatchbacks or classic sedans. They’ve completely reshaped the market for modern family crossovers to suit their needs,” he concludes.
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