Ukraine to Cooperate With China on Electromobile Production
Kyiv, February 22, 2012. Ukrainian association of automobile producers Ukrautoprom is currently negotiating the possibility of joint electromobile production with the China Association of Automobile Manufacturers. According to the President of Ukrautoprom Mykhailo Reznik, the negotiations have reached their final stage. China may become the partner in creation of the national Ukrainian electrocar, he said in an interview with Liga.net.
It is important to fully use the capacity that Ukraine has for automobile production, stated Mykhailo Reznik. The prospective agreement with China, namely BYD Automobile Co Ltd, will help do that. Currently, Chinese manufacturers Chery and Geely are already operating on the Ukrainian market.
BYD Automobile Co Ltd is also interested in cooperating with Ukraine in the E-buses production. E-bus is a kind of public transport that uses electric traction, just like electromobiles. The Chinese company has vast experience in producing this type of cars and is willing to assist in establishing such manufacture in Ukraine. The National Academy of Sciences of Ukraine is interested in participating in electromobile construction and has a few of its own sketches, mentioned Mykhailo Reznik.
Electromobiles are significant for low maintenance costs and environmental friendliness. Energy conversion efficiency of electromobile engines is 88-95 percent. These cars also tend to be more durable compared to regular cars.
Ukraine would benefit from national electromobile production since this will protect this niche of the national market from imports domination, explained Mykhailo Reznik. He spoke of large potential of Ukrainian automobile market. Two thirds of cars in Ukraine are over 10 years old and the amount of cars per 1,000 residents is only 158 (some European countries have over 500 cars per 1,000).
Ukrainian automobile industry suffered significant decline due to 2008 crisis but used to enjoy annual industry growth of 30 percent. In 2011 Ukraine produced 26 percent more cars than in 2010, which has a positive tendency for the market. Reportedly, Ukrainian automobile market grew 30.8 percent in 2011.
The State Program on Automobile Industry Development in Ukraine for 2012-2020 is currently under development. According to the program, by 2020 Ukrainian domestic auto production is set to reach one million cars per year with 100,000 vehicles produced in 2011. The program aims to facilitate the increase of foreign investment into the industry.