ФІСКАЛЬНА ПОЛІТИКА ТА ЕКОНОМІЧНА ДИПЛОМАТІЯ В КОНТЕКСТІ ЄВРОІНТЕГРАЦІЙНОЇ ТРАНСФОРМАЦІЇ СТАЛОГО АВТОМОБІЛЬНОГО РИНКУ УКРАЇНИ

This article examines fiscal policy and economic diplomacy as interrelated instruments shaping the transformation of Ukraine’s sustainable automotive market through European integration. The relevance of the study is driven by the growing importance of the automotive sector under globalisation, tightening environmental requirements, the predominance of imported vehicles, and the need to align national regulatory arrangements with European Union norms and standards. The paper analyses the current state and distinctive features of fiscal and customs regulation in Ukraine’s automotive market, and identifies key imbalances between the revenue-oriented logic of fiscal policy and the requirements of innovation-led, environmentally oriented sectoral development.Particular attention is given to fiscal mechanisms supporting Ukraine’s automotive market. The analysis shows that the fragmentation of tax decisions, the instability of preferential regimes, and the absence of a long-term automotive-market strategy adversely affect investment expectations, constrain localisation of production, and complicate Ukraine’s integration into European value chains.The article proposes recommendations to strengthen fiscal policy for Ukraine’s road transport sector through a long-term strategic approach aligned with sustainable development priorities and economic diplomacy. It argues for establishing a stable and predictable tax regime, greening taxation in line with the “polluter pays” principle, shifting towards an investment-stimulating model of fiscal regulation, and using tax instruments to support innovation, fleet renewal, and the development of e-mobility. It also emphasises the importance of fiscal incentives for production localisation, the development of automotive industrial clusters, and investment attraction. Overall, the combination of fiscal incentives, industrial policy, and international economic cooperation is shown to create conditions for a competitive, innovative, and sustainable automotive market in Ukraine in the context of European integration.