Ukraine, traditionally a strong partner of the automotive industry
Since the end of the 1950s, cars have been built in Ukraine, which was still part of the Soviet Union. The country was the engine of the Soviet automotive industry until the fall of the Soviet Union. Besides agricultural machinery and commercial vehicles, the companies also produced its own car models. Ukraine of today is a significant centre for the supply sector and for the assembly of various models from European, Korean, and Chinese manufacturers. Besides, years of experience, well-trained specialists and proximity to the European single market are decisive locational advantages.
The Russian invasion in Ukraine has resulted in a significant disruption of numerous production processes, primarily attributable to the disruption of logistics and supply chains. This was exemplified by the absence of cable harnesses, for which Ukraine is regarded as a crucial producer in Europe. Before the invasion, the country hosted 38 international factories operated by 22 companies from six different countries, representing an investment of more than $550 million. The industry employed about 60,000 Ukrainians. The companies include Bader, SEBN, Prettl, Nexans, Kromberg & Schubert, Yazaki, Fujikura, Leoni, Bosch and Aptiv.
Ukrainian automotive suppliers at the IAA
The Ukrainian delegation represents the whole supply chain from parts and component manufacturers, the biggest Ukrainian OEM, electric batteries and charging station production until IT innovation technology solution providers. Manufacturers of heaters, electronic components and equipment, tooling and plastic parts are open for contractual manufacturing. All of them are ready for cooperation and reliable long-term partnerships. There are plenty of opportunities to start a promising cooperation already now. High qualified engineers and IT specialists, skilled workers, resilient production capacities and 5 times less costs than in Germany are the competitive advantages of the industry in Ukraine.
See the brochure of co-exhibitors here.
United support for the economy of Ukraine
The booth at the IAA was made possible thanks to the cooperation between sequa gGmbH, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Ukrainian Automotive Mobility Cluster (UAMC). As the leading industry association, the UAMC has contributed its contacts and network in Ukraine. sequa gGmbH has made its wide-ranging trade fair experience in Germany and its network of contacts available. GIZ provided financial support for the project.
Despite the challenging conditions in a full scale war, the Ukrainian companies have been able to create structures to resume production only 20 days after the invasion. In 2023 the sales of new cars increased twice compared to the previous year and soon will reach the number of sold new cars in 2021. Car manufacturing was re-started in June 2022.
