AUTOMOTIVE TIRE MARKET -- UKRAINE

 

26 JANUARY 2000

SOURCE: US EMBASSY KIEV

 

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INTERNATIONAL COPYRIGHT, U.S. AND FOREIGN COMMERCIAL

SERVICE AND U.S. DEPARTMENT OF STATE, 1999.  ALL

RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

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SUMMARY

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1. THE MARKET FOR PASSENGER CAR TIRES IS ESTIMATED AT

BEING WORTH US$ 56-64 MILLION FOR 3.5 MILLION TIRES,

AND THE TRUCK TIRE MARKET, VALUED AT US$ 80-95 MILLION

FOR 1.7 MILLION TIRES.  PRESENTLY, 94 PERCENT OF ALL

TIRES SOLD ARE OF LOCAL OR CIS ORIGIN, ONLY 6 PERCENT

ARE IMPORTED. THIS REPORT DESCRIBES THE MARKET, HOW IT

IS STRUCTURED AND SUGGESTS, BEST PROSPECTS AND

STRATEGIES FOR US EXPORTERS FOR POSITIONING IN THE

MARKET.

 

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COMPETITION

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2.  THE TOTAL ANNUAL SALES OF AUTOMOTIVE AND TRUCK

TIRES IS AROUND US$ 136-154 MILLION FOR 5.2 MILLION

TIRES.  ONLY 6 PERCENT ARE IMPORTED, AND INCLUDE THE

FOLLOWING BRANDS AVAILABLE ON THE MARKET, MICHELIN,

GOOD YEAR, BRIDGESTONE, CONTINENTAL, YOKOHAMA,

PIRELLI, AND NOKIA, AND INCLUDE EASTERN EUROPEAN

DEBICA AND MATADOR.

 

THERE ARE THREE LOCAL PRODUCERS (DNIPROSHINA, ROSAVA

AND VALSA), SEVEN LARGE WHOLESALE DISTRIBUTORS

(UKRPROMINVEST-UKRAVTOZAPCHASTYNA (KIEV), TRADELINE

(KIEV), AMALGAMATION INVELTA (DNIPROPETROVSK),

UKRTECHPROM (DNIPROPETROVSK), TRANSSHINA

(SIMPHEROPOL), ARGO (KHERSON), THE TRADING HOUSE

ALTRAN AND DOZENS OF SMALL DISTRIBUTORS.

 

AVERAGE PRICES VARY FOR AUTOMOTIVE TIRES, BUT THE

AVERAGE PRICE CALCULATES OUT TO US$ 16 FOR ONE, AND A

TRUCK TIRE - FOR AN ESTIMATED US$ 80 PER PIECE.

 

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STRUCTURE OF SALES AND BEST PROSPECTS

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3.  EIGHTY PERCENT OF ALL TIRES SOLD ARE FOR CARS, AND

THE REMAINING 20 PERCENT ARE TIRES DESTINED FOR TRUCKS

 

THE MOST POPULAR TIRE SIZES FOR THE UKRAINIAN MARKET

INCLUDE THE FOLLOWING:

-- PASSENGER CAR TIRES

155/70R13, 165/70R13, 175/70R13, 185/65R14, 205/70R14,

195/65R15, 185/75R16C

-- TRUCKS

260R-508(9.00-20) 300R-508(11.0020) 320R-508(12.00-20)

-- BIKES

350-18, 3.75-19

-- AGRICULTURAL MACHINERY

15.5-38, 240-508

 

ALTHOUGH LOCAL PRODUCTION MEETS THE DEMAND FOR CAR

TIRES, IT DOES NOT SATISFY LOCAL DEMAND FOR HEAVY LOAD

DAMPERS LIKE BELAZ (KAMATSU OR CAT) WITH LOAD CAPACITY

OF 110-130 TONS.  THE DEMAND FOR HEAVY LOAD TIRES IN

UKRAINE IS ESTIMATED AT TWO THOUSAND TIRES PER YEAR,

WITH DIMENSIONS AND TIRE SIZES OF33.00-51.  HIGH

DEMAND IS FOR TIRES 260P-508 AND 300P-508, SINCE MANY

UKRAINIAN CARS RUN ON SUCH TIRES.

 

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CONCLUDING REMARKS

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4.  FOR DETAILED INFORMATION OR ASSISTANCE IN

EXPORTING TO UKRAINE INTERESTED AMERICAN COMPANIES ARE

WELCOME TO CONTACT THEIR NEAREST USDOC EXPORT

ASSISTANCE CENTER, WITH COPY TO: DAVID HUNTER, CS KIEV

SENIOR COMMERCIAL OFFICER; OR OLEKSANDR ZAVHORODNIY,

CS KIEV COMMERCIAL SPECIALIST, TEL: (380-44) 417-2669;

FAX: (380-44) 417-1419; E-MAIL:

OLEKSANDR.ZAVHORODNIY@MAIL.DOC.GOV.  AMERICAN

SUPPLIERS ARE ALSO URGED TO EXERCISE CAUTION BEFORE

EXPORTING TO UKRAINE.  POST SUGGESTS CONSULTING THE

COUNTRY COMMERCIAL GUIDE AVAILABLE AT:

HTTP://WWW.STAT-USA.GOV AND TO DISCUSS PROSPECTIVE

DEALS WITH EMBASSY STAFF, AMERICAN CHAMBER OF

COMMERCE, ACCOUNTING FIRMS, LEGAL COUNSEL AND OTHER

SOURCES.

 

 

ANOTHER VALUABLE SOURCE OF INFORMATION ON ALL CIS

COUNTRIES, INCLUDING TRADE LEADS AND BUSINESS

CONTACTS, IS BISNIS, THE OFFICIAL USG CLEARING HOUSE

OF TRADE INFORMATION IN NIS. PLEASE CONTACT TREVOR

GUNN DEPUTY DIRECTOR OR JULIANA KINAL, INTERNATIONAL

TRADE SPECIALIST

BUSINESS INFORMATION SERVICE FOR THE NEWLY INDEPENDENT

STATES (BISNIS) IN WASHINGTON D.C. (202) 482-4655 OR

BY WRITING TO BISNIS, U.S. DEPARTMENT OF COMMERCE,

ROOM 7413, WASHINGTON, D.C. 20230, OR FAX (202) 482-

2293.

1-800/USA-TRADE

E-MAIL: BISNIS@ITA.DOC.GOV                           .

HTTP://WWW.BISNIS.DOC.GOV