Problems of the development of automotive industry in Ukraine

Abstract

Close intersectoral connections are the basis for classifying mechanical engineering as a backbone sector of the real economy and (indirectly) financial and social domains. Accordingly, the prospects of the socio-economic development of Ukraine are decisively dependent on the state, dynamics, and efficiency of the functioning of the mechanical engineering industries, first of all, the full technological cycle of the automotive industry oriented toward finished products. The purpose of the article is to diagnose the problems of automotive industry development in Ukraine in the context of external influences. The author establishes the key trends in the development of the automotive industry in Ukraine during the period of its independence. The article substantiates the effectiveness of the application of the state protectionist policy tools, in particular the requirements for the localization of production, exemption of mechanical engineering enterprises from payment of VAT, excise duty, land tax, income tax, import duty, bans on the import of used cars, etc. The article shows that the use of these tools during 1995-2008 contributed to the growth of the volume of production and export of passenger cars, as well as an increase in the number of full-scale passenger cars (made from domestic chassis and components) and their share in the total number of cars manufactured in Ukraine. The share of imports in the total consumption of mechanical engineering output in Ukraine and Poland is calculated. The causes (external and internal) of destructive transformations in Ukrainian mechanical engineering, which intensified after 2008, are determined, and directions for their elimination are outlined.