The Ukrainian Hybrid Car Market

Abstract

The growing number of vehicles equipped with electric powertrains is part of the global trend toward environmentally friendly transportation, as such vehicles are considered one of the most effective ways to reduce environmental pollution.

The transition of Ukraine’s vehicle fleet to electric and hybrid cars is one of the state's pressing tasks, given that electricity is rightly regarded as a readily available alternative energy source. The more such vehicles are introduced into the country, the less Ukraine will depend on fuel imports.

Today, the media and other sources of information offer the following designations for vehicles equipped with different electric propulsion systems: NEV, EV, BEV, HEV, PHEV, MHEV, FHEV, EREV and FCEV. The paper explains these abbreviations and provides brief characteristics of the cars.

The classification of an electric vehicle as a particular type is reflected in the Customs Code of Ukraine by assigning it a UKTZED (Ukrainian Classification of Goods for Foreign Economic Activity) code. This, accordingly, affects the number of payments when importing vehicles into the customs territory of Ukraine, in particular, the code 8703 80 10 10 is used for BEVs and the code 8703 80 10 90 for EREVs. Fiscal factors have a significant impact on the domestic passenger car market, as demonstrated by the analysis of the last decade.

As the popularity of hybrid cars grows, countries with a high level of motorisation are taking measures to increase their number, including through government incentives. This is rarely seen in Ukrainian legislation, while the domestic fleet of hybrid cars has more than tripled over the past 5 years: from 29.2 thousand units in 2020 to 98.1 thousand in 2024.

Ukrainian consumers' preferences for car powertrains have changed significantly. In 2024, electric vehicles and hybrids, including EREVs, accounted for 33% of the new car market, displacing passenger cars with petrol and diesel engines. However, given the current interest of global automakers in expanding their model range with vehicles with an extended range, as well as changes to the Customs Code of Ukraine, this type of electric vehicle may grow in popularity in the domestic market by the end of the decade.

Keywords: electric vehicle, hybrid car, EREV, hybrid market and fleet, statistics, Customs Code, excise duty.