Sales in the automotive sector surge again

A healthy rise of 6.3 percent in sales of cars and trailers production to nearly PLN 42 bn (EUR 10 bn) in the first quarter of 2019 suggests a new surge in an industry employing 210,000 people in Poland, according to an industry report.

Results for the first quarter indicate that the manufacture of parts accounts for PLN 24 bn (EUR 5.6 bn) while ready vehicle sales are growing most rapidly - by 8 percent to EUR 15 bn according to AutomotiveSuppliers.pl. The sales results for May as recorded by Statistics Poland indicated growth in sales of the core sector - not including tyres and windscreens - of over 16 percent.

The increase in production is also reflected in exports, which rose by 3.5 percent to EUR 7 bn in the first quarter. For 2018 overall exports amounted to EUR 26 bn, which was a record year. This represents a growth in exports of over 50 percent since 2010, when exports of automotive production amounted to EUR 17.3 bn.

However a recent report by KPMG and the Motor Industry Association suggested a degree of pessimism on the part of companies in the industry, especially those who are operating outside the luxury car segment, where sales of passenger vehicles have dropped.

Nevertheless, overall in May the number of new cars registered rose to 47,100, which is over 11 percent higher than last year.

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