After strong new car sales last year, matching pre-pandemic levels, the Polish automotive market continues its positive trend in the first quarter of 2025. In the first three months of this year, 2.5% more new passenger cars left dealerships compared to the same period a year earlier. However, this sales growth was mainly driven by individual customers, as companies and entrepreneurs purchased fewer cars than in the previous year. According to data published by the Polish Vehicle Rental and Leasing Association (PZWLP), the long-term car rental market in Poland recorded a 7.3% year-on-year increase in total fleet size in the first quarter. Conversely, the Rent a Car sector (short-term car rentals) saw a 6.4% decline, according to PZWLP data.
The first quarter of 2025 confirms that the Polish automotive market, despite many disruptions and challenges stemming from global factors such as carbon emission regulations, tariffs, and the rise of Asian brands, continues its positive momentum. Last year, for the first time in many years, total new car sales in Poland returned to pre-pandemic levels. As it turns out, in the first three months of 2025, new car sales in Poland continued to grow—albeit at a modest pace of 2.5% year-on-year.
Similarly to the previous year, this growth was generated mainly by individual customers, who purchased 10.9% more new cars than in the same period last year. Without the strong demand from individual buyers, the Polish automotive market would have already stopped growing. Companies and entrepreneurs, who still account for over two-thirds of total sales, bought 1.6% fewer cars than a year earlier. Overall, in the first quarter of 2025, 142,000 new passenger cars left Polish dealerships, of which 49,700 were purchased by private individuals and 92,400 by companies.
Companies Bought Fewer New Cars — Private Customers Drive the Market
In the first quarter of this year, companies and entrepreneurs purchased a total of 92,400 new passenger cars, 1.6% less than in the same period last year. Sales dynamics varied depending on the type of vehicle financing.
For purchases via loans, traditional leasing, and own funds combined, sales volume was 3.7% lower than a year ago. However, in the long-term rental segment, according to PZWLP data gathered from member companies, the industry acquired 6.7% more new passenger cars than in the same period last year.
According to PZWLP, the long-term rental sector purchased a total of 20,700 new passenger cars in Q1 2025, accounting for 22.4% of total new car sales to companies in Poland. Therefore, more than one in five new cars bought by companies and entrepreneurs in the first quarter was acquired via long-term rental.
Stable, Moderately Fast Growth in Long-Term Rental Market
Considering the key metric measuring industry growth—the total number of financed and delivered cars under long-term rental services—PZWLP data shows the active fleet grew by 7.3% year-on-year in Q1 2025.
“The long-term car rental market in Poland has become accustomed to stable quarter-to-quarter growth measured by financed and active fleets rented to clients. The first quarter of 2025 confirms this steady trend. The sector purchased and registered 6.7% more new cars compared to last year, while the active fleet of rented vehicles increased by 7.3% year on year,” said Robert Antczak, CEO of PZWLP. “Rental as a method of acquiring company fleet cars now has a fixed place in the corporate client segment and is increasingly gaining traction among medium and small companies, including sole proprietors, as well as growing in popularity among private customers.”
Looking at the high availability of new cars, regular supply deliveries, and attractive purchase conditions, it can be said that the market supply side has returned to the pre-COVID-19 pandemic normal. Demand for long-term rental services is also growing steadily, with new customers entering the market. Factors influencing the monthly rental rates are becoming more predictable, thanks to recent cuts in benchmark interest rates and stabilized inflation levels. This is particularly important for combustion engine cars and all kinds of hybrid powertrains. However, the biggest challenge and uncertainty for the industry remains the pace of fleet electrification in long-term rental, especially due to the elimination of the “Mój Elektryk” (My Electric) subsidy program and its new version “NaszEauto,” which does not cover company fleets, as well as the still nascent secondary market for used electric vehicles.
Among the more than 275,000 total fleet vehicles in long-term rental owned by companies affiliated with PZWLP, the most popular models at the end of Q1 2025 included the Skoda Octavia, Toyota Corolla, and Kia Ceed.
Diesel Cars Decreasing, Hybrids and Electrics Now Over 14% of Long-Term Rental Fleet
PZWLP data after Q1 2025 indicates the ongoing transformation of powertrains in cars under long-term rental. According to the latest figures, diesel cars continue to decline, approaching another psychological threshold. By the end of March, diesel-powered vehicles made up just over 30% of the fleet—exactly 30.4%, down 2.6 percentage points from a year earlier. Meanwhile, the share of petrol cars steadily increased to 55.3% of the fleet, up 1 percentage point year-on-year.
However, the fastest growth is seen in so-called ecological powertrains, including all types of hybrids and fully electric vehicles (BEVs). At the end of March, these vehicles accounted for 14.3% of the total fleet, up 1.6 percentage points compared to the previous year. The share of fully electric cars grew by 1.1 percentage points year-on-year, reaching 3.7% of the long-term rental fleet by the end of Q1.
“Polish long-term rental fleets are steadily moving toward lower emissions and environmental neutrality, as PZWLP data for Q1 2025 clearly shows,” said Piotr Wróbel, Board Member of PZWLP. “It is also evident that the transformation toward even more ambitious goals, namely zero-emission electric vehicles, is underway. Low- and zero-emission cars now constitute over 14% of the total fleet in long-term rental. This is a significant and tangible influence on the overall CO2 emissions of the long-term rental fleet. However, we are also aware that the share of fully electric cars, although consistently increasing, remains relatively low compared to Western European countries. As an organization representing the long-term rental and Rent a Car sectors in Poland, we have been actively engaging with the government and cooperating with other automotive and leasing market organizations to restore public subsidies for electric cars for companies. Currently, subsidies are available only for individuals and very small sole proprietors, while it is mainly larger companies that drive demand for electric vehicles in Poland. We believe that at this stage of electromobility development, incentives and market stimulation through subsidies for companies remain necessary and would accelerate market growth.”
The average CO2 emissions of new passenger cars purchased by the long-term rental industry in Q1 2025 were 100.4 g/km, which is 27.6 g/km (21.5%) lower than a year earlier. For delivery vans, average emissions reached 154.4 g/km, 10.4% (14.5 g/km) higher than in the same period in 2024.
Car Rental Companies Adjust to Market Challenges — Total Fleet Shrinks
According to PZWLP data for Q1 2025, the Rent a Car sector (short- and mid-term rentals) recorded a 6.4% year-on-year decline in total active fleet size.
“After a very difficult and demanding 2024 for the Rent a Car industry in Poland, Q1 data confirms that rental companies still face significant challenges,” said Tomasz Kapelko, Board Member of PZWLP. “Rent a Car is the branch of car rental most quickly and strongly affected by the tough economic situation and macroeconomic factors. Currently, rental companies continue to struggle with reduced demand from both companies and private customers, who are very cautious with their spending and limit expenses on services such as Rent a Car. This situation forces rental companies to adjust their fleets according to current market conditions.”
The Rent a Car sector in PZWLP is currently represented by seven large networked Polish and international car rental companies, whose combined fleet* in short-term (1-30 days) and mid-term (1 month to 2 years) rental services amounted to 18,500 vehicles at the end of March 2025.
*— excluding Sixt Rent a Car Poland / Eurorent Sp. z o.o.