The automotive market in Poland is rapidly recovering from the supply crisis related to the availability of new cars. In the first half of 2024, Polish showrooms saw a 16% increase in car sales compared to the same period last year, totaling nearly 277,000 vehicles. This indicates that new car sales levels in Poland have returned to pre-pandemic levels. Companies, responsible for the majority of showroom sales in Poland, purchased over 10% more cars than last year. According to data published by the Polish Vehicle Rental and Leasing Association (PZWLP), nearly one in four new passenger cars bought by companies in the first half of the year was acquired through long-term rental. The long-term rental market grew by 7.9% year-on-year by the end of June 2024. Although smaller, the Rent a Car sector also experienced growth, expanding by 1.1% year-on-year.
Polish Automotive Market Returning to Pre-Pandemic Sales Volumes
In the first half of 2024, Polish car dealerships sold 16% more new passenger cars than in the same period last year. The sales volume almost reached pre-pandemic levels, with nearly 277,000 cars sold in the first half of this year compared to 278,000 in the first half of 2019. Compared to the entire European Union, Poland performed significantly better in the first half of 2024, with car sales in the EU growing by only 4.5% year-on-year.
Companies Drive New Car Sales
As in previous years, companies remain the main driver of new car sales in Poland, purchasing 190,500 cars in the first half of the year (a 10.3% increase from the same period last year), accounting for 68.8% of total sales. Individual customers bought 86,500 cars, marking an impressive 31% year-on-year increase, partly due to a low base from the previous year. Sales volumes for both companies and individual customers reached pre-pandemic levels.
Significant Increase in Used Car Imports
In the first half of 2024, the import of used cars from abroad also saw significant growth. A total of 438,500 used cars were imported to Poland during this period, a 24.5% increase from the previous year. These figures indicate that the secondary car market is also recovering, both in Poland and across the EU. Experts note that individual customers primarily drive the import market, and it is positive that new car sales in this group are growing faster than the import of used vehicles.
Long-Term Rental Market Continues to Thrive
Data from the first half of 2024 indicates that new car sales to companies in Poland grew by 10.3% year-on-year. The growth rate varied depending on the vehicle financing method. Sales of new passenger cars purchased outright, on credit, or through leasing collectively increased by 10.6% year-on-year. Long-term rental sales, including Full-Service Leasing and Leasing with Service, grew by 5.9% year-on-year. PZWLP experts observe that car dealers are offering higher discounts to small business customers, boosting sales primarily in traditional financial leasing, which remains popular among SMEs in Poland. The percentage of micro, small, and medium-sized businesses opting for long-term rental continues to rise annually.
According to PZWLP data, the long-term rental industry purchased 44,500 new passenger cars for its services in the first half of 2024, meaning nearly one in four (23.4%) new cars bought by companies in Poland during this period was acquired through long-term rental.
Steady Growth in Long-Term Rental
The long-term rental market in Poland remains in good condition, growing by 7.9% year-on-year by the end of June 2024. Daniel Trzaskowski, a PZWLP Board Member, notes that while growth is slower than in previous years, the industry maintains a relatively high share of car sales to companies, with sales volumes returning to pre-pandemic levels. Medium-term forecasts are optimistic, with expected growth in business investment translating into increased growth dynamics in the long-term rental market.
Increasing Adoption of Electric Vehicles
According to PZWLP data, the fleet of cars used in long-term rental is increasingly leaning towards low- and zero-emission vehicles. Gasoline-powered cars now make up the largest share, representing 55.3% of the total (a 1.5 percentage point increase over the year). The share of diesel vehicles continues to decline, now at 31.9%, down 4.5 percentage points from the previous year. The fastest-growing segment is eco-friendly vehicles, including hybrids and fully electric cars (BEV), which now account for 12.8% of the total fleet, up 3 percentage points over the year. Fully electric cars, although still a small percentage, now constitute 2.9% of the fleet, a 1.3 percentage point increase over the year.
PZWLP experts highlight the relatively slow growth of the electric vehicle market in Poland compared to Western Europe. Increased growth followed the implementation of the “My Electrician” subsidy program, but continued support is necessary. A new subsidy program from the KPO fund is expected in 2025, providing an additional boost to electric vehicle sales in Poland.
Rent a Car Sector Sees Modest Growth
The Rent a Car sector recorded a modest growth of 1.1% year-on-year in the first half of 2024. PZWLP experts note that this sector is particularly sensitive to macroeconomic factors, with high business costs affecting company decisions on using Rent a Car services. Rising costs for car rental companies themselves also lead to cautious fleet expansion.
The Rent a Car sector is currently represented in PZWLP by seven major networked Polish and international car rental companies, with a combined fleet of nearly 21,000 vehicles in short-term (1-30 days) and medium-term (1 month to 2 years) rentals as of the end of June 2024.
Source: [CEO.com.pl](https://ceo.com.pl/rynek-wynajmu-dlugoterminowego-aut-i-rent-a-car-w-polsce-w-i-polroczu-2024)
