90 Thousand Electric Cars Sold: What Will Change in the Market with the Return of VAT

State of the Automotive Market in Ukraine in 2025

According to ХВИЛЯ: Throughout 2025, the automotive market in Ukraine remained stable, except for a significant increase in electric car sales, which reached 90 thousand units. This number exceeds the expected figure of 70 thousand units, indicating a growing interest in electric cars among Ukrainian consumers. However, starting January 1, 2026, significant changes will occur in the electric vehicle market related to the return of value-added tax (VAT) on the customs clearance of electric cars, which may complicate the situation for potential buyers.

Prospects and Challenges of the Electric Vehicle Market in 2026

In the first quarter of 2026, a sharp decline in electric vehicle sales is expected, likely due to new financial burdens on consumers. Additionally, the increase in the automobile tax by 20% may also negatively impact the overall market. It is noted that the share of the USA in the Ukrainian automotive market will stabilize at around 30%, which may indicate a steady demand for American cars.

Along with these changes, the possible introduction of mandatory technical control (MTC) in 2026 is also causing concern among some market participants. Investments in the installation of gas equipment, which range from $500 to $800, may also distract consumers from choosing electric vehicles. Overall, the electric vehicle market in Ukraine has witnessed significant changes, but with the return of VAT and new tax conditions, challenges will only intensify.

The rise in electric vehicle sales in 2025 indicates a trend towards consumers switching to environmentally friendly modes of transport, however, upcoming changes in tax policy may significantly impact this dynamic. The return of VAT on electric cars and the increase in automobile tax create new financial barriers for Ukrainian consumers, which may reduce interest in electric vehicles in the near future. Thus, the car market in Ukraine, particularly the electric car sector, is facing important challenges that could change its development in the coming years.