The automotive market in Poland

Statistics Poland reports that in 2020, there were almost 33 million motor vehicles and tractors, as well as nearly 1.7 million motorcycles registered in Poland. Compared to 2019, it is an increase of less than a million in the case of motor vehicles and tractors, and of over 80,000 motorcycles. The number of registered passenger cars increased from 24.4 million in 2019 to over 25.1 million in 2020.

According to data from the Polish Central Register of Vehicles and Drivers collected in 2021, there were over 1.7 million new vehicle registrations this year, of which as many as 1.3 million were passenger cars. In the same year, over 372 thousand driving license documents were issued.

Old cars dominate the Polish market. At the end of 2020, as many as 40% of passenger cars registered in Poland were over 20 years old, while 38.3% were between 11 and 20 years old. In 2020, vehicles with gasoline engines accounted for 45% of the Polish car park, 40% were diesel, LPG came third with 14%, while hybrid vehicles accounted for only 1%.

Report „The Automotive Industry” published by the Polish Automotive Industry Association reports that in 2020 Polish factories manufactured 428 thousand passenger cars and light commercial vehicles. It is a decrease of 31.2% compared to the previous year, resulting from the temporary economy lockdown due to the COVID-19 pandemic.

CHANGES IN THE POLISH AUTOMOTIVE MARKET

The Automotive Market Research Institute SAMAR conducted an analysis of changes in the Polish automotive market in the years 2000-2020. According to a report published by the Institute, in 2000, there were 35 brands available in Poland offering 216 models, while 20 years later, consumers could choose from 49 brands and 369 models. The share of companies in purchased vehicles increased from 4.6% in 2000 to over 70% in 2020. The average price has increased while purchasing power has decreased. In 2000, the average price of a car was PLN 40,097, equating to 20.8 of the average monthly salary. However, in 2020 the average price reached PLN 121,804, i.e., 22.6 of the monthly average wage.

THE SITUATION IN THE POLISH AUTOMOTIVE MARKET, AS SEEN BY THE INDUSTRY

In the face of the COVID-19 pandemic and the uncertain situation in the world, the majority of representatives of the automotive industry in Poland, which the Polish Automotive Industry Association has surveyed, assess the market situation as rather bad. In their opinion, the situation will remain unchanged in the next 12 months, although both distributors and producers expect a quantitative increase in sales in the next 6 months. The biggest challenges for the industry in the first half of 2022 were Poland’s political and economic situation, new legal regulations, and labour costs.

TRENDS IN THE AUTOMOTIVE MARKET IN POLAND

The development of the automotive market in Poland and Europe in the coming years will be marked by the EU proposal „Fit for 55”, aiming to reduce greenhouse gas emissions by 55% by 2030 and ultimately be neutral in terms of carbon dioxide emissions by 2050. To reach this level, traditional propulsion systems would have to be eliminated and replaced with zero emissions by 2030. It also means that vehicles that do not meet these requirements would have to disappear from the European market after 2035.

Additionally, the need for greater digitization of the Polish automotive market is indicated. Until now, customer contact points and sales channels were based on stationary points. The pandemic forced a change in this model and presented the potential of virtual car sales, both to distributors and customers. The latter are encouraged to buy a vehicle online thanks to, among others, the satisfaction guarantee, competitive prices, brand trust and the possibility of post-purchase improvements.