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The Cabinet approved a decree "On approval of Concept of the State Target Economic Program for passenger car manufacturing industry development until 2020", the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
The purpose of the document is to ensure development and competitiveness of the domestic passenger car manufacturing industry based on innovation and investment model of development. By 2020, it is planned to reach several performance indicators, such as localization over 55%, covering domestic demand by domestically produced vehicles by 70%, and increasing domestic exports to 220,300 cars annually.
Experts say the production of cars ensures a high added value - up to 70%, creates demand for goods and services of related industries and stimulates research and development. One new job at automotive companies stimulates the emergence of up to six jobs in related industries.
The main directions of the state program include an effective customs and tariff policy in order to protect domestic manufacturers, better regulation and investment environment, enhanced standardization and certification systems in the industry. Also, the state will contribute to the development of competition in production, sale and service of cars, the integration of domestic automakers in the international automotive industry, as well as the development of leasing schemes in the production and distribution of motor vehicles.
According to the developers, the program until 2020 will allow to create about 175,800 new jobs, including 56.8 million in the production of cars and 129,000 in the production of parts. An increase of manufacture of passenger cars from 69,700 in 2012 to 734,400 in 2020 and the growing share of domestic cars on the internal market from 20% in 2012 to 57% are expected in the first five years of the Program. Experts say that the implementation of the program may result in 47.7 billion UAH of tax revenues from automobile enterprises in 2020.