This report covers the market developments in FY 2014 and the data available as of February 2015.

The Polish automotive sector managed to cope well with the difficulties related to sluggish external and domestic demand in 2014 and the situation improved on annual basis on nearly all segments.

The production of motor vehicles returned on upward path in 2014, when it inched up marginally by 0.6% y/y, following six consecutive years of decline. The modest advance was propped by the good performance of the commercial vehicle segment, while production of cars maintained on downward path.

The car parts segment continued robust growth in 2014, the sold production value increasing at roughly the same y/y pace as in 2013. Prospects for the car part manufacturing sector continue to be optimistic. The gross output of motor vehicle parts manufacturing is projected to grow from $23.5bn in 2014 to $25.6bn in 2017, to reach $38.7bn in 2025, according to our QuERI forecasts. Exports are also expected to rise from $20.4bn in 2014 to $20.7bn this year and further grow to $33.6bn in 2025.

The automotive exports maintained positive y/y performance in January-September 2014, driven by the rising exports of car parts and accessories. Exports of buses also increased on an annual basis, while tractors, passenger cars and vehicles for transport of goods recorded recording negative y/y performance in value terms.
Prospects for the Polish automotive market remain optimistic, considering the number of newly announced investments in expanding production capacities. Nonetheless, since the automotive sector is mostly oriented towards exports (78% of the production is exported), its performance is linked to the developments on foreign markets, particularly Western Europe.

Key points:
• Motor vehicle output returns on upward path in 2014
• Car part sold production value continues robust growth
• New passenger car registrations increase for second consecutive year
• Volkswagen starts construction of new plant in Poland
• EC approves grant for General Motors Manufacturing Poland’s project in Gliwice