Continuing trucks market decline in Ukraine that has almost brought domestic production to a halt affects negatively “AutoKrAZ”. The only Ukrainian manufacturer of heavy-duty trucks, Kremenchug Automobile Plant, finds it difficult to withstand crisis but progress made shows that the situation stabilizes gradually and production rate tends to increase. Within the second quarter of this year KrAZ almost doubled production of vehicles: 265 units for April-to-June period against 140 units for January-to-March period. Despite the fact that double increase in production in the second quarter was not sufficient to achieve performance figures reached in the first half year of 2015 (30 percent reduction), 47 percent decrease in production for the first quarter as compared to 2015 and 15 percent reduction for the second quarter of 2016 respectively show increase in production rate. In the second half year KrAZ intends to increase production rate to reach and exceed, if possible, last year’s figures to fulfill business plan for 2016.
In the first semester “AutoKrAZ” produced about UAH 618m worth of products including UAH 18m worth of spare parts and UAH 12m worth of castings. 405 vehicles rolled off the main assembly line, chassis cabs account for 64 percent of the total amount, platform trucks for 27 percent, truck tractors for 7 percent and dump trucks for 2 percent. 67 percent of vehicles manufactured for 6 months are intended for export sales while 33 percent for domestic market.
Except vehicles the automobile plant has built 15 tow vehicles since the beginning of the year: 9 trailers and 6 semi-trailers, increase by 1,5 times as compared to the first half-year of 2015 года в 1,5 раза. Production of spare parts grew 6,6 percent for this period.
In June 75 vehicles, 3 trailers and 1 semi-trailer were delivered to finished products. Most vehicles are built for foreign customers.
The company hopes to increase deliveries to the inner market in the second half year primarily due to public procurement processes and national manufacturer support policy proclaimed by the government. If officials are guided by this policy in decision making when purchasing national products at the expense of budget funds economic recovery of our country will speed up.
