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% reduction), 47% decrease in production for the first quarter as compared to 2015 and 15% 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 618 million UAH worth of products including 18 million worth of spare parts and 12 million worth of castings. 405 vehicles rolled off the main assembly line, chassis cabs account for 64% of the total amount, platform trucks for 27%, truck tractors for 7% and dump trucks for 2%. 67% of vehicles manufactured for 6 months are intended for export sales while 33% – 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, an increase by 1,5 times as compared to the first half-year of 2015. Production of spare parts grew by 6,6% 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 the country will speed up. (AutoKrAZ/Business World Magazine)