How did car sales change after fuel prices went up?

The trend of increasing demand for electric vehicles, as well as for the installation of gas equipment, continues. At the same time, the share of diesel vehicles is decreasing slightly.

Average prices for the main types of automobile fuel over the past year did not remain stagnant: at first they grew, then gradually decreased for several months, jumped up when full tax rates returned, and then continued to grow.

Accordingly, fuel prices could influence the decision of motorists to choose cars with one or another type of engine or power plant. This was studied at the Institute of Automotive Market Research with distribution by segment and dynamics of installations of gas equipment.

Ukrainian gas stations managed to establish sufficient supplies of the main types of fuel; its shortage has not been observed for more than a year. However, changes in suppliers and logistics, as well as changes in the exchange rate and the abolition of reduced tax rates on fuel led to its rise in price.

According to information from NefteRynok a year ago (i.e.. in October 2022) the average retail price of A-95 gasoline was 49.15 UAH. The minimum price recorded over the past 12 months is UAH 43.9. The current price in October 2023 is 55.3 UAH/l, and this is the maximum value for the period that we are researching. The price of diesel fuel is almost the same and changes almost simultaneously.

Average prices at gas stations over the past 12 months, A-95 and LPG, data from NefteRynok

“Avtogaz”, a liquefied propane-butane mixture, was sold at retail a year ago at an average price of 26.5 UAH/l. The lowest value over the past 12 months is 21.4 UAH. Price in October 2023 – 28 UAH/l (in November even higher – more than 33 UAH/l). At the same time, the price of propane-butane ranged from 45.3 to 58.3% of the price of gasoline.

General dynamics of passenger car sales by fuel type

In October 2023, Ukrainians most often chose gasoline vehicles. These were purchased by 43.4% (47.6 thousand) of the total number of purchase and sale transactions of new and used vehicles – cars, trucks of all categories and buses. If we add to them cars with installed gas equipment (18.5%, 20.4 thousand), then cars with spark-ignition gasoline engines will make up the absolute majority: 61.9% of total sales.

The share of diesel cars was 29.5% (32.4 thousand). Vehicles equipped with an engine to operate exclusively on gas fuel accounted for 0.4% of the total number (406 units).

The share of electric vehicles was 5.6% (6.2 thousand) of the total.

Dynamics of vehicle sales by fuel type (total import and resale of new and used), October 2022 – October 2023

Compared with the previous month (September 2023), the share of diesel engines decreased again (from 29.9% to 29.5%). The share of electric vehicles increased from 5.3% to 5.6%. In a month-on-month year-over-year comparison, electric vehicles grew the most, from 2.7% to 5.6%.. Also, compared to October 2022, the share of gasoline cars has noticeably decreased, from 46.1% to 43.4%.

Regarding other types of engines, the changes there are insignificant compared to the previous place: cars with hybrid power plants – from 2.4% to 2.6%; cars with LPG – 18.5% as before, “gas” – from 0.3% to 0.4%.

Internal resales

In the domestic market in October, gasoline cars predominated – 40.1% (36 thousand) of such transactions were concluded; of vehicles using LPG was 22.1% (19.9 thousand. transactions). Diesel cars in the ICE vehicle group were in the minority: 34.3% (30.8 thousand. transactions).

Among all cars on the domestic market, 1.9% were electric (1.7 thousand), 1.2% were hybrid (1.1 thousand) and 0.3% were exclusively gas (314 units).

If we compare the current figures with the previous month, the share of diesel cars decreased by 1.2%, the proportion in the market of gasoline and hybrid cars, as well as “gas” cars that only have a liquefied gas mixture engine power system installed at the factory, has not changed. The share of electric vehicles increased by 0.1% (1.5%), and fewer cars with gas equipment were purchased, which reduced their share by 0.6%.

Used import

In October, used vehicles with diesel engines were most often imported from abroad (38.8%, 9.5 thousand). The share of gasoline cars is close, but somewhat less – 38.4% (9.4 thousand). As always, we imported a small number of cars with gas equipment – 1.1 thousand. 4.4%, with hybrid power plants (725 units, 3%) and “gas” (98 units, 0.4%).

Electric vehicles continue to increase their share, as well as their quantitative presence in the import segment: 15%, 3.6 thousand. PC.

Compared to September 2023, in June the share of diesel cars decreased from 38.9% to 38.8%. The share of gasoline cars also decreased – from 39% to 38.4%. The share of cars with gas equipment increased slightly, from 4.3 to 4.5%, cars with hybrid power plants – from 2.8 to 3%, the share of “gas” cars did not change, remaining at 0.4%. Electric vehicles took up more, from 14.7% to 15%.

New

The most popular vehicles in October were new vehicles with gasoline engines.. Among all new cars registered for the first time, these were 38.8% (2.6 thousand. PC.).

Diesel vehicles were purchased by 32.5% (2.2 thousand), hybrid – 15.7% (1.1 thousand), with factory gas – 0.6% (44 units).

The share of electric vehicles was quite significant 12.4% (843 units).

Compared to September 2023, the number of gasoline cars increased by 0.1%, the share of diesel cars decreased by 2.3%, and hybrid cars increased by 1.1%. The share of vehicles with factory (or installed at a “warranty” service station) LPG has not changed and is 0.6%. The share of electric vehicles increased by 1.1%.

Dynamics of HBO installation

In October, Ukrainians continued to be quite active in installing gas equipment and officially re-registering such cars. A total of 6.5 thousand were recorded. such re-equipment, which is only 1.5% less than in September, but 80.6% more than in October last year.

Dynamics of installations of gas equipment on vehicles, October 2022 – October 2023

Average retail prices for automobile fuel at Ukrainian gas stations continue to grow slowly, and now amount to about 32 UAH. per liter of propane-butane mixture, 55 UAH. for the same volume of A-95 gasoline, diesel fuel is sold at approximately the same price. Prices for premium grades of gasoline start from 58 UAH/l. Accordingly, this state of affairs with prices encourages Ukrainian motorists to look for ways to save fuel costs, and most of all this is manifested in the “saving” of large or used cars with gasoline engines by installing LPG, and under these circumstances the segment of electric vehicles is developing most actively.