Ukraine’s automotive market requires systemic reform: business and government discuss solutions

20/ 04/ 2026

On 16 April, the European Business Association held a roundtable discussion on the de-shadowing and regulation of Ukraine’s automotive market. The event brought together key stakeholders to develop solutions aimed at improving the business environment, enhancing road safety, and increasing state budget revenues. Business position Vitalii Dzurynskyi, Founder and Shareholder of the VIDI Group, presented a comparative analysis of the automotive markets of the European Union and Ukraine. According to him, the automotive sector in the EU makes a significant contribution to the economy — annual tax revenues amount to approximately €180–200 billion — while regulation is focused on fleet renewal, compliance with environmental standards, and mandatory technical inspection of vehicles. In Ukraine, however, the market structure in recent years has shifted in favour of used cars. At the same time, the state’s main tax revenues come from official market operators. Among the factors contributing to the shadow economy, the speaker highlighted schemes involving so-called “Europlates”, the import of damaged vehicles without compliance with technical regulations, the “grey” import of electric vehicles, as well as the growing shift of sales to online channels and social media without proper business registration. Serhii Dashko, CEO of Pryde Motor LLC, the official Honda distributor in Ukraine, focused on the impact of the structure of Ukraine’s vehicle fleet on environmental performance and road safety. He noted that since 2011 Ukraine has effectively lacked a mechanism for controlling the technical condition of vehicles due to the abolition of mandatory technical inspections, which has negatively affected accident rates. In addition, according to experts, a significant share of used cars entering the Ukrainian market in large volumes over the past decade does not meet EU and Ukrainian safety and environmental requirements. This negatively affects road safety while also creating a misleading perception among citizens regarding the quality of such vehicles. Full presentation available via link. Proposed solutions include: preventing undervaluation of vehicles during customs clearance and sale; introducing a minimum ownership period to apply tax incentives; revising taxation approaches for electric vehicles; updating consumer protection legislation; reintroducing mandatory periodic technical inspections for all vehicle categories; strengthening enforcement of vehicle certification procedures; increasing road police control over compliance with traffic rules regarding vehicle technical condition. Government position: taxation policy and enforcement Serhii Lysiuk, Deputy Head of the State Tax Service, stated that the Tax Service is already implementing measures to de-shadow various sectors of the economy, with the automotive market identified as one of the priority areas. This work will continue through strengthened tax compliance monitoring, audits, and awareness-raising activities with businesses. Danylo Hetmantsev, Chair of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, emphasised that car trading is a sector where every vehicle can be traced via VIN code, creating real opportunities to combat shadow schemes. He assured that the issue of de-shadowing the automotive market remains under the supervision of the parliamentary committee and law enforcement agencies. Environmental dimension and development of e-mobility Serhii Derkach, Deputy Minister for Development of Communities and Territories of Ukraine, stressed the need to harmonise the Ukrainian market with European regulations that impose higher safety and environmental standards. The Ministry is working on a new road safety strategy and invites businesses to participate in its development. He also highlighted the development of the electric vehicle market, noting a global trend of continued growth, which requires charging infrastructure expansion as well as unified taxation and regulatory frameworks for all market participants. He further drew attention to the significant underfunding of road infrastructure and the need to attract private investment. Oleh Bondarenko, Chair of the Verkhovna Rada Committee on Environmental Policy and Nature Management, emphasised the need to introduce extended producer responsibility for the full lifecycle of vehicles, tyres, and automotive batteries, as well as the transition to stricter environmental standards (Euro-6 and Euro-7 instead of the current Euro-5). He also raised the issue of state policy on reducing transport emissions and introducing fair carbon taxation. Safety and transparency of procedures Pavlo Soroka, Deputy Head of the Main Service Centre of the Ministry of Internal Affairs in Kyiv, reported that the mandatory technical inspection infrastructure already includes necessary safeguards — a registry of inspection operators, photo and video recording of checks — enabling effective control over vehicle technical condition without creating new regulatory bodies. Since 2024, the MIA Service Centre has strengthened oversight of vehicle valuation: in cases of undervaluation, relevant information is forwarded to the State Property Fund for action. Nataliia Panova, Deputy Head of the State Property Fund, noted that the Fund is consistently working to improve transparency in valuation activities. Last year alone, around 10,000 valuers were stripped of licences, and electronic testing was introduced to prevent abuses. However, the creation of a unified valuation database requires legislative amendments, including changes to the Tax Code. Participants agreed that de-shadowing the automotive market is a complex task requiring coordinated action from business, parliament, government, and regulatory authorities. Key priorities include the introduction of effective technical vehicle inspections, transparent taxation, harmonisation with European standards, and the creation of a level playing field for all market participants. The European Business Association will continue working with businesses and public authorities to develop concrete legislative and regulatory initiatives aimed at fostering a more civilised, safe, and transparent automotive market in Ukraine. We thank all business participants and business associations for their active engagement, including the Ukrainian Electric Vehicle Association EV-UA, UkrAutoprom Association, the Association of Ukrainian Banks, the Leasing Association, the Oil and Gas Association of Ukraine, and others.

On 16 April, the European Business Association held a roundtable discussion on the de-shadowing and regulation of Ukraine’s automotive market. The event brought together key stakeholders to develop solutions aimed at improving the business environment, enhancing road safety, and increasing state budget revenues.

Business position

Vitalii Dzurynskyi, Founder and Shareholder of the VIDI Group, presented a comparative analysis of the automotive markets of the European Union and Ukraine. According to him, the automotive sector in the EU makes a significant contribution to the economy — annual tax revenues amount to approximately €180–200 billion — while regulation is focused on fleet renewal, compliance with environmental standards, and mandatory technical inspection of vehicles.

In Ukraine, however, the market structure in recent years has shifted in favour of used cars. At the same time, the state’s main tax revenues come from official market operators. Among the factors contributing to the shadow economy, the speaker highlighted schemes involving so-called “Europlates”, the import of damaged vehicles without compliance with technical regulations, the “grey” import of electric vehicles, as well as the growing shift of sales to online channels and social media without proper business registration.

Serhii Dashko, CEO of Pryde Motor LLC, the official Honda distributor in Ukraine, focused on the impact of the structure of Ukraine’s vehicle fleet on environmental performance and road safety. He noted that since 2011 Ukraine has effectively lacked a mechanism for controlling the technical condition of vehicles due to the abolition of mandatory technical inspections, which has negatively affected accident rates.

In addition, according to experts, a significant share of used cars entering the Ukrainian market in large volumes over the past decade does not meet EU and Ukrainian safety and environmental requirements. This negatively affects road safety while also creating a misleading perception among citizens regarding the quality of such vehicles.

Full presentation available via link.

Proposed solutions include:

preventing undervaluation of vehicles during customs clearance and sale;
introducing a minimum ownership period to apply tax incentives;
revising taxation approaches for electric vehicles;
updating consumer protection legislation;
reintroducing mandatory periodic technical inspections for all vehicle categories;
strengthening enforcement of vehicle certification procedures;
increasing road police control over compliance with traffic rules regarding vehicle technical condition.

Government position: taxation policy and enforcement

Serhii Lysiuk, Deputy Head of the State Tax Service, stated that the Tax Service is already implementing measures to de-shadow various sectors of the economy, with the automotive market identified as one of the priority areas. This work will continue through strengthened tax compliance monitoring, audits, and awareness-raising activities with businesses.

Danylo Hetmantsev, Chair of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, emphasised that car trading is a sector where every vehicle can be traced via VIN code, creating real opportunities to combat shadow schemes. He assured that the issue of de-shadowing the automotive market remains under the supervision of the parliamentary committee and law enforcement agencies.

Environmental dimension and development of e-mobility

Serhii Derkach, Deputy Minister for Development of Communities and Territories of Ukraine, stressed the need to harmonise the Ukrainian market with European regulations that impose higher safety and environmental standards. The Ministry is working on a new road safety strategy and invites businesses to participate in its development.

He also highlighted the development of the electric vehicle market, noting a global trend of continued growth, which requires charging infrastructure expansion as well as unified taxation and regulatory frameworks for all market participants. He further drew attention to the significant underfunding of road infrastructure and the need to attract private investment.

Oleh Bondarenko, Chair of the Verkhovna Rada Committee on Environmental Policy and Nature Management, emphasised the need to introduce extended producer responsibility for the full lifecycle of vehicles, tyres, and automotive batteries, as well as the transition to stricter environmental standards (Euro-6 and Euro-7 instead of the current Euro-5). He also raised the issue of state policy on reducing transport emissions and introducing fair carbon taxation.

Safety and transparency of procedures

Pavlo Soroka, Deputy Head of the Main Service Centre of the Ministry of Internal Affairs in Kyiv, reported that the mandatory technical inspection infrastructure already includes necessary safeguards — a registry of inspection operators, photo and video recording of checks — enabling effective control over vehicle technical condition without creating new regulatory bodies.

Since 2024, the MIA Service Centre has strengthened oversight of vehicle valuation: in cases of undervaluation, relevant information is forwarded to the State Property Fund for action.

Nataliia Panova, Deputy Head of the State Property Fund, noted that the Fund is consistently working to improve transparency in valuation activities. Last year alone, around 10,000 valuers were stripped of licences, and electronic testing was introduced to prevent abuses. However, the creation of a unified valuation database requires legislative amendments, including changes to the Tax Code.

Participants agreed that de-shadowing the automotive market is a complex task requiring coordinated action from business, parliament, government, and regulatory authorities. Key priorities include the introduction of effective technical vehicle inspections, transparent taxation, harmonisation with European standards, and the creation of a level playing field for all market participants.

The European Business Association will continue working with businesses and public authorities to develop concrete legislative and regulatory initiatives aimed at fostering a more civilised, safe, and transparent automotive market in Ukraine.

We thank all business participants and business associations for their active engagement, including the Ukrainian Electric Vehicle Association EV-UA, UkrAutoprom Association, the Association of Ukrainian Banks, the Leasing Association, the Oil and Gas Association of Ukraine, and others.