Even though GDP is showing growth, largely driven by tax revenues, the economic situation in the country remains very tense, and this directly affects the automotive industry. The president of the automakers association, Mykhailo Reznik, told journalists about this. At the same time, according to him, the authorities' reaction to the crisis in the sector, which until recently was considered a priority, contributed about 4% of GDP and provided jobs for tens of thousands of people, is striking. More precisely, the complete lack of any reaction is striking.
It was simply a matter of being proud of successes when the car market was growing faster than anyone else in the region, and the country ranked seventh in Europe in terms of the number of cars produced. Today it is hard to believe, but that was the case. And before that, there was hard work. Mr. Reznik reminded that Ukraine was the first among the former Soviet republics to create a joint venture for car production. He also said that while heading the embassy in South Korea, he saw how difficult the situation of the domestic auto industry was. Together with ZAZ, they managed to convince Daewoo to invest specifically in the Ukrainian economy. At that time, both the executive and legislative branches supported the business. The process was not easy, but political will was present. As a result, an investor came to the country, ZAZ received modernization and new equipment, thousands of jobs were created, and the products were in demand abroad. Export supplies reached 600 million dollars a year. Today, however, as the head of Ukravtoprom noted with regret, the plant is on the verge of bankruptcy due to external circumstances and the state's failure to fulfill its obligations.
The current inaction of the authorities shows that the state treats business more as a source of consumption rather than as a partner.
In such a situation, serious investors will not come to the industry. It is easier to turn away from the problem and look for new reasons for pride. But the auto industry is a barometer of the state not only of industry but of the entire economy. Therefore, it is unlikely that professional PR specialists from the authorities will be able to find an equivalent replacement for new pride.
The colleague was supported by the head of the All-Ukrainian Association of Auto Importers and Dealers, Oleh Nazarenko. He added that the country's investment attractiveness is not enhanced by the lack of affordable loans for business, Ukraine's weak position in the free trade zone with the EU, and the disorder with the import of cars on European license plates.
The situation is very difficult, but not hopeless — Ukraine can still recover. This was the main message of the press conference. No one counts on strong domestic demand: this year it is estimated at 100 thousand new passenger cars, and in the future growth will be slow. However, the integration of domestic producers into the global supply chains of world auto giants is a quite achievable goal. The implementation of such a scenario depends on whether the state can quickly create a favorable investment climate and effective industrial policy. Simply put, on the ability of the authorities to provide investors with clear and stable rules of the game in the market and create competitive advantages for industry.
History shows that nothing is impossible — one only needs trusting and productive partnership between the state and business, as in the late nineties, when we were the first in the post-Soviet space to launch a joint project for car production.
