Politics

Underdeveloped car rental market expects growth


Motorists crowd Druzhby Narodiv Boulevard in Kyiv on March 7. The Ukrainian capital has seen a huge rise in car ownership in 25 years, but the car rental market remains small. (Kostyantyn Chernichkin)

Photo by Kostyantyna Chernichkin

The car-rental culture has never been mainstream in Ukraine, unlike in most Western countries. The current estimated fleet of 2,000 rental vehicles for a population of more than 40 million people is hardly an impressive number.

However, leading car rental companies expect growth in 2017 in a market that, according to Haim Kapelnikov, chief executive officer of Avis Ukraine, might have $20 million to $25 million in annual revenue.

Olesya Momotyuk, financial manager at Sixt rental car in Ukraine, noted that Ukraine’s “car rental market is growing since the second half of 2015.” Sixt and major international brands Avis, Europcar, Hertz, Budget and United are all present on the Ukrainian market. Among local car rental brands, the biggest one is BLS.

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