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ORDER OF THE CABINET OF MINISTERS OF UKRAINE

of January 15, 2014 No. 25-r

About approval of the Concept of the State target economic development program of passenger automotive industry for the period till 2020

1. Approve the Concept of the State target economic development program of passenger automotive industry for the period till 2020 which is attached.

Determine the Ministry of industrial policy the state customer of the Program.

2. To the ministry of industrial policy together with the interested central executive bodies to develop and submit to six-months time to the Cabinet of Ministers of Ukraine the draft of the State target economic development program of passenger automotive industry for the period till 2020.

Prime Minister of Ukraine     

N. Azarov  

 

Approved by the Order of the Cabinet of Ministers of Ukraine of January 15, 2014 No. 25-r

The concept of the State target economic development program of passenger automotive industry for the period till 2020

Determination of problem to which solution the Program is directed

Production of cars provides high rate of value added (more 70), creates the goods demand and services of the companies of allied industries (production of metal rolling, plastic, autoglasses, auto chemical goods, etc.) and stimulates research activities. Creation of one workplace at the companies of the automotive industry attracts creation less than six workplaces in allied industries.

The production volume of cars in Ukraine during 2003-2008 grew by 4 times, having reached maximum in 2008 - 401,6 of one thousand cars. In 2009 the production volume decreased by 6 times - to 65,7 of one thousand units, in 2010 I will eat around though increased by 13,5 of one thousand units, however remained at very low level - 75,3 of one thousand units. In 2011 the production volume grew to 97,5 of one thousand units, and in 2012 decreased to 69,7 of one thousand units.

Considerable declining production of cars in 2009-2012 is caused by cumulative action of two factors - strengthening of the competition from import after reduction of import duty from 25 to 10 percent and decrease in demand due to the lack of the stimulating factors for acquisition of cars.

For today the contribution of domestic automotive industry to national economy remains insignificant. In particular, in 2012 the industry share in industrial production constituted less 0,8 of percent, in creation of national gross domestic product - less 0,4 of percent. In 2012 the industry share of the sold industrial products constituted less 1,2 of percent. In production of cars only 19,3 of one thousand workers works, together with allied industries (production of components and materials) the quantity of busy makes to 29,8 one thousand workers, or about 0,1 of percent all working in Ukraine.

In filling of the domestic market of cars import which share constantly grows (during 2006-2012 grew from 44 to 80 percent) prevails.

Now the domestic automotive industry is characterized by insignificant quantity of workplaces, high deterioration rate of fixed assets and very moderate recovery of production volumes against the background of rapid growth of share of import in home market scheme.

Analysis of origins of problem and reasons for need of its decision by program method

Basic reasons of emergence of problem:

normative legal regulation, adverse in comparison with other countries;

insufficient support of industry from the state;

use of more expensive financial resources by domestic enterprises in comparison with overseas enterprises;

insignificant amounts and level of localization of production of cars in Ukraine;

lack of access to the current technologies.

The complex problem resolution is possible by development, acceptance and accomplishment of the State target economic development program of passenger automotive industry for the period till 2020 (further - the Program).

Program purpose

The purpose of the Program is the ensuring development and competitiveness of domestic passenger automotive industry based on innovative and investment model of development with localization level over 55 percent, covering of the internal demand with cars of national production for 70 percent, increase up to 2020 in cars in 734,4 of one thousand units and building-up of the export potential in 220,3 of one thousand cars.

Determination of optimal variant of the problem resolution on the basis of comparative analysis of possible versions

The problem resolution is possible three options.

The first option provides leaving of the existing situation without changes as a result of which in Ukraine production of cars will continue generally due to SKD of foreign brands from the imported components. For today small nodular assembly is limited to small amount of models.

The second option is in development and production of own car model at the expense of internal production resources that, considering the insufficient level of development of scientific and technical and material resources, will provide need of direct financing at the expense of the government budget in the amount of about 35 billion hryvnias.

The third, optimal variant, provides combination of efforts of executive bodies, local government bodies, automobile building companies for ensuring development and competitiveness of domestic passenger automotive industry by involvement of world carmakers to production of cars in Ukraine, using motivation of decrease in production costs and access to the market that will allow to create new and to load the available workplaces not only at the companies of the automotive industry, but also allied industries. At the expense of it realization of industrial policy in industry which is based on strong positions of Ukraine as the production site will be provided, namely: to convenient logistics, availability of manpower, basic infrastructure and domestic market of sale.

Ways and methods of the problem resolution, term of accomplishment of the Program

Accomplishment of the Program is provided in the way:

creations of premises for technical and technological retrofitting of the companies of industry modern quickly perenalanalazhivayemy equipment for annual building-up of capacities of production with use of high-quality designs, progressive materials, committed mechanics and electronics;

ensuring development of the competition in the field of production, sales and servicing of automotive vehicles;

reduction of cost of automotive vehicles, components, nodes, aggregates and spare parts;

work performance improvements;

integration of domestic enterprises on production of components, nodes, aggregates and spare parts in world automotive industry;

educations with attracting investors, including the overseas, new enterprises on production of automotive vehicles, components, nodes, aggregates and spare parts;

assistance to innovative development of the domestic automotive industry by receipt of access to the current technologies of development, confirmation of conformity and safe operation of products, competitive in the world market.

Within accomplishment of the Program it is planned to perform:

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