Strong economy pushes up car sales in Poland
Car sales in Poland have risen by more than 17% for the year-to-date on the back of a strong economy, reduced unemployment and low interest rates. By the end of September, nearly 303,000 cars had been registered
, a rise of almost 45,000 on the same period last year, with business sales accounting for the majority of the increase. For September, car sales were up by nearly a fifth year-on-year at 32,653 and if demand continues at the same pace, the market will reach more than 400,000 units by the end of 2016. The car market in Poland is feeling the benefits of increased external investment, including ongoing funding of major infrastructure projects by the EU that will continue into 2017. According to the OECD
, the rate of GDP growth in Poland is expected to rise from 3% in 2016 to 3.5% in 2017, as unemployment falls and companies increase headcount. In addition to rising incomes, consumer credit has also become easier to obtain, leading to growing interest in funding offers such as leasing, which is resulting in a shift from purchasing used cars to new cars. There is enough demand in the used car market to maintain growth in used values, particularly for diesel models, with Autovista Intelligence data showing average C-segment values up by 1.8 percentage points for diesel and 1.4 percentage points for petrol in H1 2016.