360 Perspective of The Automotive Industry in Poland - Final (Updated)

360° Perspective
of the Automotive
Industry in Poland
Opportunities for Indian and
Polish entrepreneurs
Commissioned by the
Embassy of India to
Poland & Lithuania
August 2018
Prepared by:
Table of Contents
Macroeconomic Analysis 3
Automotive Industry in Poland 13
Trends in the Automotive Industry

28
in Poland
Opportunities for India 39
Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 2

Macroeconomic Analysis
Battery Eco-system

Executive Summary - Poland at a Glance
Large amounts of FDI and EU funds have boosted Poland’s economy since it joined the EU in 2004. Today
the country represents stable economic growth and offers high potential for future development.
General Information, Poland Quick Snapshot, Poland
 Poland remains the leading country in the CEE region in terms

Official name Republic of Poland
of FDI stock, which accounted for $237.1 billion in 2017. The
Capital Warsaw Polish automotive industry has received more than $2 billion in
Area 312.68 km2 investments over the past four years.
Population 38.4 million  Foreign investors are attracted by the strong economic
Currency Złoty environment and the developed supply chain of the country’s
automotive industry. There are 13 Original Equipment
EU, OECD, NATO and
Member of the Manufacturers (OEM) in Poland.
WTO
EUR/PLN
1 EUR = 4.30 PLN  Due to its high purchasing power and large population, Poland
as for August 21, 2018
is the leading market for motor vehicles sales in the CEE region.
 Poland is ranked 3rd in the CEE region in terms of motor

vehicle production volumes. In 2017, local manufacturing
facilities produced 690,000 vehicles.
 Poland is ranked 5th in the EU and 2nd among CEE countries in

terms of the value of its automotive parts production, excluding
motor engines.
 Following trends in Western countries, the Polish government is

actively promoting the development of its electromobility
market and related regulations.

Comparison of the Polish Economy and the European Union (EU)
Businesses based in Poland benefit from the country’s strong and stable economic environment. Poland is
the largest recipient of EU funds and is expecting to receive €84 billion over the period 2014-2020.
Average GDP in Current Prices, Poland and EU, 2004-2017 Real GDP Growth Rate, Poland, 2009-2017
800 6%
5.0%
4.6%
622 603 3.8%
564 564 557 561 586 578 3.6%
USD, Billion
543 4%
Percentage
600 521 3.3%
501 513
469 489 2.8%
534 529 545 525
479 500 524 477 471 2%
2.9%
400
429 440 1.6%
1.4%
345 Global Financial Crisis in 2008
306
200 255 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017
Accession to the EU in 2004 Poland EU average
0
GDP in Current Prices, EU Top 16, 2016-2017, USD, Billion
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
# Country 2016 2017 # Country 2016 2017

Between 2004 and 2008, Polish economy doubled its size
1 3,478 3,677 9 468 493
• Poland is ranked #1 among all CEE countries in terms of strong 2 2,651 2,622 10 391 417
economy based on GDP statistics and is placed #8 amongst other
3 2,465 2,583 11 305 334
EU countries. The growth in the economy was boosted mainly by
the support of EU cohesion policy and privatisation of public 4 1,859 1,934 12 307 325
enterprises in the country. 5 1,237 1,311 13 239 252
• The country has been witnessing an average of 3.2% GDP growth 6 777 826 14 205 218
rate since 2009. Poland`s central bank and European Commission
7 514 538 15 195 216
are expecting the growth to be over 4.3% in 2018. In parallel to
GDP growth, the purchasing power of Poland`s 38 million #8 POL 471 525 16 188 212
residents is dynamically increasing and is expected to rise by 20%
Countries from CEE region
by year 2022. Source: The World Bank

Foreign Direct Investment in Poland
In the CEE region, Poland has been the most attractive country for Foreign Direct Investment (FDI).
FDI Stock in Selected CEE Countries, 2014-2017 FDI Inflow in Selected CEE Countries, 2014-2017
USD, Billion USD, Billion

250 237.1 20
211.5
200 185 185.0 16
15.3
14.3 13.9
155.1
150 12
121.5 121.9 9.8
116.6
99.5 93.3 7.8 7.4
100 84.8 80.6 8 6.4
5.5
50 4 2.5
0.5 -14.8 -5.9
0 0
2014 2015 2016 2017 2014 2015 2016 2017
Poland Czech Republic Hungary Poland Czech Republic Hungary
• Poland remains the leading country in the CEE region in terms of FDI stock, which accounted for $237.1 billion in 2017.
• More than 90% of FDI comes from the EU. The main investors in Poland are from the Netherlands (20.1%), Germany
(17.4%), Luxembourg (13.9%) and France (10.6%).
• Manufacturing accounts for 31.5% of FDI stock, while motor vehicles manufacturing accounts for 5.2% of FDI, or $9.8
billion.
• Poland had the largest FDI inflows in the CEE region between 2014 and 2016.
• The National Bank states that the decrease of FDI inflows is due to profits being reinvested by direct investors.
Source: National Bank of Poland, OECD

Impact of the European Union Membership on Poland
Poland is an EU member. The free movement of people, goods, capital, and services across EU member
states makes Poland an attractive destination for international investors.
• Harmonization of the Polish law with EU regulations

• Access to over 460 million customers within EU
• Infrastructural developments
» EU development funds of €67 billion » New national-conservative

» May 1st 2004 – EU received under EU’s 2007-2013 plan governing party Law &
membership
» 40% distributed by mid-2010 Justice (PiS) elected for
2015-2019
» 2007 was a record year - » 2009 - FDI drops significantly to
with FDI increasing to €17 only €8 billion » 2016 – 78.5 km of new
billion motorways are completed
» €801 million invested in the » Poland plans to build 4000
automotive industry » 2010 – FDI of €10 billion km of highways by 2025
» 2008 - FDI drops significantly to » EU cohesion funds » 2016-2018 – the

» 2006 – Investments of €16 government develops
only €10 billion of €84 billion to be
billion in the Polish economy Electromobility Plan
» €466 million invested in the » Auto industry has negative received under
investment of – €325 million EU’s 2014-2020 and the
automotive industry Electromobility Act,
plan
which went in force
» December 21st 2007 – » 2011 – expected about in 2018
becomes part of €11 billion FDI
Schengen area
2004 2006 2008 2010 2012 2014 2016

Foreign Direct Investment in Poland – Automotive Industry
The automotive industry in Poland has received more than $2 billion in investments over the past four
years. The majority of the investments are from German OEMs.
Main Investors in Poland’s Automotive Industry, 2014-2018

Origin of the Year of Value
Company Description
Investor Announcement Invested
VW has recently opened a consequent

Volkswagen Poznań 2014 $1.1 billion production plant in Poland, in Września. It
has been producing VW Crafter since 2016.
First in Poland Mercedes-Benz engine

Mercedes-Benz
2016 $582 million production plant in Jawor to be opened in
Manufacturing Poland
2019.
Largest EV battery factory in Europe, to be

LG Chem Wroclaw
2017 $387 million opened by 2020. Aims to produce 100,000
Energy
batteries a year.
A production extension of one of the VW

Volkswagen Poznań 2018 $235 million plants near Poznan to produce 62,000 more
VW Caddy 5 from 2018/2019.
Production of small electric motors and

Mabuchi Motor Poland 2016 $95 million
motor parts will start in 2019.
In 2005, Escorts Group acquired 100% of

Farmtrac Tractors
2005 $2 million their Polish JV partner, manufacturer of
Europe
agricultural and forest machinery.
Source: Frost & Sullivan, PAIH

Import of Automotive Products into Poland
Automotive products are becoming an increasingly important component of Polish imports. This is evident
from the expanded share of automotive products in the country’s total imports.
The share of automotive products in total imports is

Automotive Imports, Poland, 2011-2016
growing
USD, Billion
• Automotive imports increased by 13.6% in 2016 and their
30 12% 12% share of Poland’s total imports was 12.4%.
11% 11% 11%
10% 10%
20 23.0 23.2 24.5 8% • The value of automotive imports in terms of PLN rose
20.3 21.8 21.5
significantly in 2015 (11%) and 2016 (19%), but was balanced
10 4%
by the strengthening of the US dollar.
0 0%
2011 2012 2013 2014 2015 2016
Import value Share in total import
Automotive Imports, Poland, 2011-2016, USD, Billion 28% increase in passenger cars imports in 2016
Type of Product 2013 2014 2015 2016 • This was mainly because over 1 million used vehicles were
imported into Poland in 2016, representing 20.2% more than
Passenger cars 5.2 6.0 5.6 7.2 the previous year.
Buses 0.1 0.2 0.1 0.1
• More than half of automotive imports into Poland are that of
LCVs and trucks 3.7 3.6 3.3 3.5
automotive parts.
Engines 0.03 0.03 0.05 0.05
Automotive parts 12.1 12.8 11.8 12.9 • The share of automotive imports from India is less than 1%.
Trailers and semitrailers 0.6 0.7 0.6 0.7
Total automotive imports 21.8 23.2 21.5 24.5
Share in total country imports 10.5% 10.4% 10.9% 12.4%
Source: Eurostat

Export of Automotive Products from Poland
The value of passenger car exports in terms of the Polish zloty increased by 19.7% in 2016, but was
balanced by the strengthening of the US Dollar.
Automotive exports play an important role in Polish

Automotive Exports, Poland, 2011-2016
economy
USD, Billion
• Exported automotive products accounted for 16.7% of the
30 34.2 32.6 33.7 33.9 23% value of Poland’s total exports in 2016.
30.2 31.4
18% 17%
20 16% 16% 16% 15%
15% • Approximately 80% of Polish automotive products are
exported to EU markets.
10 8%
• Poland exported on average 46.3% more value of automotive
0 0%
2011 2012 2013 2014 2015 2016
products than it imported between years 2011 and 2016.
Export value Share in total export
Automotive Exports, Poland, 2011-2016, USD, Billion Almost 1/3rd of Polish exports are automotive parts
Type of Product 2013 2014 2015 2016 • Poland is considered a European production hub for engine
and body parts manufacturing.
Passenger cars 6.9 6.6 6.6 7.6
Buses 1.0 1.3 1.0 0.8 • The fastest growing subcategories of automotive parts export
are transmission (48.3%), airbag (19.9%), brakes (19.2%), and
LCVs and trucks 2.9 2.7 2.6 2.8
suspension (16.2%).
Engines 0.1 0.1 0.1 0.1
Automotive parts 20.9 22.3 20.4 21.8
Trailers and semitrailers 0.8 0.8 0.7 0.8
Total automotive exports 32.6 33.7 31.4 33.9
Share in total country exports 15.9% 15.3% 15.8% 16.7%
Source: Eurostat

PESTEL Analysis of Poland
Being a member of the EU has a strong political and economic impact on the Polish business environment.
Political Factors Impact
Member of the EU, OECD and WTO High
Conservative government supports foreign investors by providing tax incentives High
The level of bureaucracy in the legal procedures is high Moderate
Economic Factors Impact
Stable economic growth and one of the highest GDP growth rates in the EU High
Automotive industry attracts large foreign direct investments High
Poland is largest beneficiary from the EU funds High
Social Factors Impact
23.5 million people (about 61.2% of the population) are of working age, while unemployment
High
is only at 6.6%
Well qualified labour force Moderate
1.5 million students graduate every year Moderate

PESTEL Analysis of Poland
Being a member of the EU has a strong political and economic impact on the Polish business environment.
Technological Factors Impact
R&D centers are present in all major cities High
Government is encouraging electromobility and EV charging network development High
Demand for innovative solutions from the automotive sector Moderate
Environmental Factors Impact
Poland complies with Kyoto protocol Moderate
The country follows EU environmental requirements Moderate
Legal Factors Impact
Special Economic Zones (SEZ) offer tax incentives to manufacturers and R&D centers High
Changes in VAT and excise duty on imported products are made by EU regulations High
Domestic contracts must be written in Polish language Moderate

Automotive Industry in Poland
Battery Eco-system

European Light Vehicle Sales in 2017
The sales of light vehicles reached 20.2 million units in 2017, accounting for approximately 1/5th of global
vehicle sales. The market leader is Germany with 3.7 million units, followed by the UK and France.
Passenger and Light Commercial Vehicle Sales, Europe, 2017
4500
4000 3,811
3500
2,955
Units, Thousand
3000
2,605
2500
2,190
Light vehicle sales in the CEE Region
2000
1,602 1,374,700 units
1,451
1500
980
1000
634 576
500 302
160 142 109 86
0
Germany UK France Italy Russia Spain Turkey Belgium Poland Czech Romania Hungary Slovakia Slovenia
Republic
Note: Sales data published by respective automotive associations of

countries might vary because of difference in reporting structure. Source: Frost & Sullivan, OICA

European Light Vehicle Production in 2017
The total light vehicle production in Europe accounted for 22.1 million units in 2017. More than 80% of
vehicles produced in the CEE region are exported, mainly to the European Union.
Passenger and Light Commercial Vehicle Production, Europe, 2017
6000 5,646
5000
Units, Thousand
4000
3000 2,886 Light vehicle production in the CEE Region
2,227 4,147,500 units

2000 1,749
1,486
1,304 1,350
1,103 1,040
1000 682
399 527
359
190
0
Germany UK France Italy Russia Spain Turkey Belgium Poland Czech Romania Hungary Slovakia Slovenia
Republic
Note: Sales data published by respective automotive associations of

countries might vary because of difference in reporting structure. Source: Frost & Sullivan, OICA

Passenger Vehicle (PV) Sales and Production in Poland
The Polish passenger vehicle market is characterized by extremely large volumes of imported used
vehicles, which accounted for 1.04 million units in 2016.
Passenger Vehicle Sales and Production, Poland, 2004-2017
1,200
1,000
800
Units, Thosuand
600
400
200
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Imports of Used PV into Poland New PV Registration in Poland Production of PV in Poland

Source: ACEA; PZPM; GUS; SAMAR; Ministry of Finance of Poland; Frost & Sullivan

Automotive Industry of Poland
Foreign investors are attracted by the strong economic environment and the developed supply chain of
Poland’s automotive industry. There are 13 Original Equipment Manufacturers (OEM) in Poland.
• Passenger vehicle (PV) Manufacturers: Fiat Chrysler Automobiles Poland (Fiat 500,
Abarth 500, Lancia Ypsilon), Opel Manufacturing Poland (Opel Astra, Cascada).
• Commercial vehicle (CV) Manufacturers: Volkswagen Poznań (VW Caddy,

Transporter, Crafter), MAN Truck & Bus Poland (MAN TGS, TGX).
• Bus Manufacturers: Solaris Bus & Coach (city and intercity buses, electric
buses), Ursus (city buses and electric buses), Autosan (city and intercity buses),
Volvo Poland (city buses, coaches, electric buses), MAN Truck & Bus Poland
(city buses), and Scania Production Słupsk (city buses).
• Tractor Manufacturers: Crystal Traktor, Farmer Traktor, Farmtrac Tractors

Europe, Pronar, Ursus
• There are 41 key manufacturers of automotive parts and accessories

with the highest revenues. The largest are Boryszew, Brembo,
Bridgestone, Delphi, Faurecia, Hutchinson, Magneti Marelli, Michelin,
TRW, and Valeo.
• There are approximately 800 small and medium sized firms

that support the functioning of the automotive industry in
Poland.
• There are approximately 570 companies with ISO/TS
16949 certification. Automotive manufacturers require this
certification.
Source: Frost & Sullivan, based on PAIH, SDCM, PZPM, Central Statistical Office of Poland

Motor Vehicle Production in Poland
Fiat Chrysler Automobiles Poland is the largest producer of passenger cars in Poland. In 2017, 99% of the
produced vehicles went to foreign markets.
Light Vehicle Production in Poland by Manufacturer, 2017
Automaker Models Produced
In total Fiat Chrysler Automobiles Poland Fiat 500, Lancia Ypsilon, Abarth 500
662,777
PCs and
LCVs Volkswagen Poznań VW Caddy, Transporter, Crafter
Opel Manufacturing Poland Opel Astra, Astra J, Cascada
Bus Production in Poland by Manufacturer, 2017
Automaker Models Produced

Others
Scania Poland Scania Citywide
MAN Truck & Bus Poland Man Lion`s City
Solaris Bus & Coach Solaris Urbino, Interurbino In total

5,251
Volvo Poland Volvo 7900 Buses
Autosan Autosan Sancity
Ursus Ursus Ekovolt, City Smile

Image Source: volkswagen.co.uk, fiat.co.uk, opel.com, volvotrucks.co.uk, solarisbus.com, scania.com , truck.man.eu. Source: PZPM, Frost & Sullivan

Prominent Polish Automotive Players
Poland has four major automotive manufacturers that are significant actors in the European automotive
market.
Boryszew
Boryszew is one of the largest industrial

groups in Poland and the largest Polish
Ursus producer in the automotive industry that
manufactures plastic elements (lockers,
Ursus S.A. has two divisions that produce farm cockpits, handles, engine covers, etc.).
tractors and city buses. The company was founded
in Warsaw in 1893 and focused on the production of
tractors. Ursus Bus was established in April 2015 to
produce city buses and electric buses.
Dębica
Dębica tire company was founded in 1937

Solaris Bus & Coach and since then it has become the leading
producer of tires in Poland. In 1995, it was
acquired by Goodyear Tire and Rubber
Company.
Solaris Bus & Coach is one of the leading
European manufacturers of buses, trolleybuses
and trams. It is owned and run by a Polish family.
It was launched in 1996 and since then has
produced nearly 15,000 vehicles. Image Source: ursus.com, solarisbus.com, debica.com.pl,
boryszew.com.pl. Source: Frost & Sullivan

Motor Vehicle Sales in the CEE Region and Poland
Due to high purchasing power and large population, Poland is the leading market for sales of motor
vehicles in the CEE region.
Total Motor Vehicles Sales*, CEE, 2015-2017 Highest vehicle sales in CEE
Units, Thousand
576 • Poland has the highest vehicle sales in the entire CEE region
600 505 and the highest growth rate of 14% on average between
432 2015 and 2017.
450
291 302
260
300 • The main reason for rising car sales is strengthening of the
150 90 101 101 124 109 142 Polish economy, which jumped from $471 billion in 2016 to
$525 billion in 2017, representing an increase of 11.5%.
0
2015 2016 2017
Poland Czech Republic Slovakia Hungary
New Passenger Vehicle Registrations, Poland, 2004-2017
Units, Thousand
600.0 485.2
416.1
450.0 355.0
318.0 293.3 317.9 327.2
274.6 272.7 289.9
300.0 235.5 239.0 232.1 220.1
150.0
0.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
*Total motor vehicle sales include passenger vehicles, commercial

vehicles and buses Source: Frost & Sullivan, OICA

Motor Vehicle Production in the CEE region and Poland
Poland is on the 3rd place in the CEE region in motor vehicle production volumes – in 2017, local
manufacturing facilities produced 690 thousand vehicles.
Total Motor Vehicle Production*, CEE, 2015-2017 Automotive sector has future investments
Units, Thousand
1,420 • The automotive industry has traditionally played a key role in
1500 1,304 1,350
Poland’s economy, with a well-established record of parts
1200 1,000 1,040 1,001 and accessories production.
900 661 682 690
495 472 505 • Although the Czech Republic remains the leading
600
manufacturer of motor vehicles in the CEE region, Poland is
300 the largest manufacturer of commercial vehicles.
0
2015 2016 2017
Poland Czech Republic Slovakia Hungary
Passenger Vehicle Production, Poland, 2004-2017
Units, Thousand
900.0 841.1 818.8 784.8
695.0 740.2
750.0 632.3
522.5 540.1 540.0 534.7 554.6 514.7
600.0 475.1 472.6
450.0
300.0
150.0
0.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
*Total motor vehicle production includes passenger vehicles,

commercial vehicles and buses Source: Frost & Sullivan, OICA

Automotive Parts Production in Poland
Poland is one of the top automotive parts markets in the European Union, with production output
increasing each year.
Value of Automotive Parts Production, Poland, 2015-2017
EUR, Million
2500
2,023
2000
1,278 1,397
1500
1,098
1000 800 853 762
668 601
412 490
500 227 321 239
0
2015 2016 2017
Suspension Silencers Brakes and Parts and Ignition Gear boxes Airbags Safety seat Bumpers Steering Seats for Road Radiators Parts of
systems and exhaust servo- accessories wiring sets belts systems motor wheels and electrical
and parts parts brakes of bodies and parts vehicles accessories ignition
• Poland is ranked 5th in the EU and 2nd among CEE countries in terms of Value of Production of Automotive Parts,
the value of its automotive parts production, excluding motor engines. CEE, 2017, EUR, Billion
• Poland is a leading producer of airbags, bumpers and radiators in the Czech Republic 21.6
EU. Poland 15.3
• Compared to 2016, Poland produced 20%, 16% and 11% more value from Romania 10.4
suspension systems and their parts; brakes; and body parts and Hungary 8.8
accessories, respectively, in 2017. Slovakia 8.0
Source: Eurostat PRODCOM

Key Automotive Parts Suppliers by Segment
The majority of leading European Tier 1 automotive suppliers have a presence in Poland.
Key Tier 1 and Tier 2 Suppliers in Poland’s Automotive Industry, 2014-2018
Automotive Parts Segment Automotive Part Suppliers
Toyota Motor Manufacturing, Volkswagen Motor Poland, Fiat Powertrain,

Powertrain Units
General Motors
Steering Systems Nexteer Automotive, TRW, Delphi, Mando Corporation
Lightning Systems Valeo, Automotive Lightning
Cooling Systems Delphi, Valeo, Hutchinson
Car Bodies and Chassis Structures Gedia, Kirchoff
Tires Michelin, Bridgestone, Goodyear
Car Glass Pilkington, Saint-Gobain Sekurit
Interior Parts Boshoku, Faurecia
Seating Systems Faurecia, Sitech, Johnson Controls, Lear Corporation
Safety Systems TRW, Autoliv
Source: PAIH

Automotive Industry Map of Poland
Poland has well established supply chain networks with access to automotive partners in the EU through
developed road infrastructure.
70% of vehicles are manufactured in Silesian area 70%
Key Vehicle and Engine Manufacturers in Poland,

Key Automotive Suppliers in Poland, 2017
2017
Image sources: volkswagen.co.uk, fiat.co.uk, opel.com, volvotrucks.co.uk, delphi.com, scania.com , truck.man.eu, toyota.pl, farmtrac.pl, valeo.com, mercedes-benz.co.uk ,
faurecia.com, magnetimarelli.com, bridgestone.eu, michelin.co.uk, solarisbus.com, boryszew.com.pl, trwaftermarket.com, hutchinson.com. Source: PZPM, Frost & Sullivan

Poland as a European Distribution Hub
Poland has motorways to distribute automotive products to Western, Central and Eastern Europe.
Moreover, Gdańsk seaport provides access to Scandinavian countries, Baltic and North seas.
Distribution Hub to EU BTS Kongsberg Automotive

Activity: automotive parts ILS European Logistics
supply to large OEMs and Development Center
Size: 16,600 sq. m Gdansk Activity: logistics for
Inter Cars – the leading
distributor of automotive
parts in Poland
Size: 45,000 sq. m
Berlin
BMW Group`s Regional Świecko Poznan
Distribution Centre Warsaw
Activity: automotive parts Germany
distribution
Size: 32,000 sq. m
Wroclaw
Dresden
Volkswagen Group Poland Katowice

Prague Krakow
Logistics Center Moto-Profil
Activity: heavy vehicles
Activity: import and
distribution
Size: 32,000 sq. m
Czech Distribution of car parts
Brno and accessories.
Republic Slovakia Size: 33,000 sq. m
Source: Frost & Sullivan, PZPM, Savills

Poland as a R&D and Innovation Hub
Major automotive companies have already established their R&D centers on the territory of Poland. New
entrants can choose Poland as R&D hub to supply innovative technologies to Europe.
R&D Tech Hub

Eaton
Activity: R&D projects
Implementation for
Tczew Eaton Truck and
Automotive group
Faurecia
Volkswagen
Activity: development
Poznan of seat frames systems
of special purpose Warsaw
vehicles
Grójec
WABCO
Activity: development Delphi
of pneumatic braking Wroclaw Activity: development
systems and suspension of software, electronic
parts Częstochowa
solutions for vehicle
control systems,
Krakow suspension solutions
Remy Automotive Gliwice Skawina
Activity: development Rzeszów
TRW BorgWarner
of starters and Tenneco
alternators Activity: development Valeo Activity: software
of safety systems development for
of exhaust systems Activity: development
production of
and suspension parts of engine cooling systems
turbocharges
Source: Frost & Sullivan, PZPM, PAIH

Key Associations in the Automotive Sector in Poland
Poland has a wide range of automotive associations that strive to develop the country’s automotive
industry.
Key Associations in the Polish Automotive Industry, 2017
Association Activity Area Detailed Description
Polish Automotive Industry

Automotive industry Cooperates with the Polish government, major OEMs, dealers, and Tier 1
Association (PZPM)
development suppliers to develop the automotive sector in Poland
http://www.pzpm.org.pl/en/
Polish Investment & Trade
Public representatives who attract investors from abroad and guide them
Agency (PAIH) Investment promotion
through bureaucratic procedures during the investment process
https://www.paih.gov.pl/en
Association of Distributors Reviews legal acts and legislative processes related to the automotive
Protecting rights and
and Producers of Automotive industry at the national level, raises awareness about the market, thereby
interests of the industry
Parts (SDCM) http://sdcm.pl/ ensuring development
Polish Alternative Fuels
Promotes use of EVs, educates people about the benefits of EVs,
Association (PSPA) Electromobility in Poland
monitors shift of automotive market towards use of BEVs and PHEVs
http://pspa.com.pl/en/home-2
Polish Vehicle Rental &
Members are 20 car rental and leasing companies which generate about
Leasing Association Corporate car leasing
40% of sales of new vehicles to companies in the country
https://pzwlp.pl/en/
Polish Chamber of
Professional network Assists with access to industry participants including manufacturers,
Automotive Industry (PIM)
development dealers, suppliers, distributors, and automotive media associations
http://pim.pl/
AutomotiveSuppliers.pl
Helps companies browse through an exhaustive database of automotive
http://www.automotivesupplier Suppliers database
suppliers who are categorised according to the type of parts they supply
s.pl/
Source: Frost & Sullivan

Trends in the Automotive
Industry in Poland
Battery Eco-system

Used Passenger Vehicle Imports in Poland
Imports of used vehicles into Poland have been driven by the gradual reduction of the import duties. In
2017, the average age of an imported used vehicle was 11.5 years with an average price of EUR 7,000.
Used Passenger Vehicle Imports, Poland, 2004-2017
Units, Thousand
1500
1,104.0 1,037.7
994.6
828.1 870.8 816.8 799.5 869.4
1000 693.3 718.3 655.3 657.4 711.9 748.9
500
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
2004–2008 2009–2010 2011–2012 2013–2018

• 2004: The ban on vehicles below • The decline in 2009 is due to • This was a stable • The market has
Euro-II norms was lifted. weakening of PLN. period for used- been driven by
• 2006: The excise duty structure • Scrappage programs introduced in vehicle imports. increasing
changed upon request of the 2009 in Europe resulted in consumer
European Commission, to benefit scrappage of used vehicles; there purchase power.
used-vehicle imports. was a limited supply of used
• 2008: The market peaked driven by vehicles from the European Union.
strong PLN.
Source: Poland Ministry of Finance ,Frost & Sullivan

Market for Imported Used Vehicles in the CEE Region
The reason why used vehicles are popular in CEE countries, including Poland, is due to their low purchase
price and absence of custom duties on the vehicles from other European Union member states.
Used PV Market Volumes of Imported Used Passenger Vehicles , CEE, 2015-2017
Units, Thousand
1200 1,038
799 869
800
Large supply of vehicles over 10 400 164 171

151 123 142 155
years old creates the aftermarket
opportunity and demand for 0
automotive parts required for 2015 2016 2017
maintenance and repair of those
vehicles. Poland Czech Republic Hungary
The Most Popular Models of Imported Used Passenger Vehicles, Poland, 2017
Audi A4 (2000-2008) 1.9/ 2.0 VW Golf (2003-2009) 1.9 Opel Astra (2004-2012) 1.9/
Diesel Diesel 1.6 Gasoline BMW 3 (2005-2013) 2.0 Diesel
Average Age: 13 years Average Age: 13 years Average Age: 11 years Average Age: 10 years
Average price: EUR 6,000 Average price: EUR 4,500 Average price: EUR 4,500 Average price: EUR 7,500
Image Source: magazynauto.interia.pl. Source: Frost & Sullivan, SDA

Number of Light Vehicles on Road in Poland
The share of passenger vehicles over 10 years old increased from 66% in 2007 to 79% in 2016,
driven by inflow of used car imports from the EU.
Active Passenger and Light Commercial Vehicles on Road*, Poland, 2011–2017
19.5
18.3
17.9
17.2
Units, Million
17.5 16.7
16.2
15.7
15.2
15.5
13.5
2011 2012 2013 2014 2015 2016 2017
*Active vehicles on road are vehicles that have been actualized within the last 5 years
Passenger and Light Commercial Vehicle on Road – Age Structure , Poland, 2007 and 2016
2007 2016
12%
9%
12%
66% 22% 79%
Less than 5 5 to 10 Over 10
Source: Frost & Sullivan, PZPM

Barometer of the Automotive Parts Industry in Poland – Key Insights
Automotive producers in Poland indicate that electromobility is one of the key mega trends that will bring
changes to the future automotive industry.
The Main Issues that Hinder the Development of Automotive Parts Factories in Poland Methodology
Unclear and unstable legal and tax environment 61%

• Over 200 respondents –
managers and owners
Slow administrative processes for construction projects 44% • 3 groups of entities - producers,
distributors, and workshops
Long waiting period for public support programs 32% • 10 customised questions for
each group = 30 questions
Slow processes of regulating the legal status of investment plots 27%
• Internet survey conducted by
The risk of investment blocking by every citizen, even in industrial areas 27% SDCM and Frost & Sullivan in
January-February 2018
Source: SDCM, Frost & Sullivan
10%
Mega Trends that Will Change the Trade Market The Biggest Threats to the
and Services in the Automotive Industry Company/Factory Development
Electromobility 63% Lack of qualified staff 56%
Autonomous vehicles 39% Rising production costs 51%
Digitalization (eg telematics) 37% Rising wages 51%
Car sharing 24% Too frequent law changes 32%
Connected vehicles 5% Unclear foreign investment policy 7%
Source: SDCM, Frost & Sullivan

Introduction of Low-Emission Zones in Europe
As more European countries introduce strict low-emission zones banning entrance of conventional
vehicles in the cities, development of alternative powertrain technologies creates a large market potential.
France UK
2040: All ICE ban 2040: All ICE ban
Norway India
2025: All ICE ban 2030: All ICE ban
Netherlands South Korea

2030: All ICE ban 2030: All diesel ban
Measure confirmed / planned
Announcement not confirmed /planned
Amsterdam Oxford
2017: Ban of Diesel < Euro 3 2020: All ICE ban in city center
2018: Ban of Diesel taxi built < 2009
Oslo
London
2017: Ban on diesel when high pollution
2017: £10 charge for ICE < Euro 4
2019: Ban on private cars in city center
2019: £12.5 charge for Diesel <
Euro 6 and Gasoline < Euro4
Brussels
Paris 2018: Ban of Diesel < Euro 2
2016: Ban of Diesel < Euro 2 2020: Ban of Diesel < Euro 4
2017: Ban of Diesel < Euro 3 2022: Ban of Diesel < Euro 5
2024: All Diesel ban 2025: Ban of Diesel < Euro 6
2030: All ICE ban
Low-emission zones that restrict entry for Stuttgart
Madrid Internal Combustion Engines (ICE) are in 2018: Ad-hoc Ban of Diesel <Euro 6
2025: Ban Diesel < Euro 6 and discussion in Poland, being part of the
Gasoline < Euro 2 Electromobility act. Athens:
2025: All diesel ban 2025: All diesel ban

Electric Vehicle Market Outlook 2017 – Europe
The market for electric vehicles (EVs) in Europe grew by 34% in 2017 with 295,500 in unit sales
compared to 220,000 in 2016. Polish EV market noted a result of 1,068 units sold in 2017.
Electric Vehicle Market: Market Outlook, Europe, 2017
295,500 67 (35 BEVs, 32 PHEVs) ~950,000 >7,500

EVs Sold In 2017 Models For Sale Total EV Car Parc Fast Charging Stations
EV Sales by Month BEV vs. PHEV Split Top 5 Selling Models

40000 PHEV BEV
Tesla Model S 12,715
Nissan Leaf 16,786

Units
20000 PHEV BEV

48.9% 51.1% Mit. Outlander 18,165
BMW i3 EV / EREV 18,399

0
Renault Zoe 27,772
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
EV Charging Infrastructure (Top 5 countries and Poland) EV Sales by Country
CCS Chademo Tesla Norway 60,118

Netherlands 9,420
Germany 835 520 59 France 40,875
UK 685 951 44 Germany 56,509
UK 48,310
Norway 436 250 40 Sweden 19,761
Belgium 14,690
France 417 650 65
Switzerland 8,044
Sweden 306 220 26 Austria 6,540
Spain 7,939
Poland 46 14 4 Poland 1,068

Electromobility Development in Poland
Polish government is actively promoting development of electromobility market and regulations, following
the trend that started in the Western countries.
The Polish government has developed an Electromobility Plan. It aims to achieve 1 million electric
vehicles (EVs) on the road by 2025, with 30% of the value added coming from local production.
Sales of Electric Vehicles, Poland, 2013-2017, units Number of Charging Stations, Poland, 2013-2017, units
1200 1068 750
1000 552
800 500
Units
Units
600 556 324
298
400 337 250
185
200 185
31 4
0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Source: PZPM, Frost & Sullivan Source: PZPM, Frost & Sullivan, EAFO
• The number of EVs sold in Poland almost doubled in 2017 from the previous year. Hyundai Ioniq, BMW i3, and Nissan
Leaf are the best selling EV models. There has been constant growth in the number of registered EVs in Poland.
• The EV charging infrastructure network in Poland consists of 552 charging stations, which are distributed mostly in the
largest cities across the country.
• Currently, the main challenges for the adoption of electromobility in Poland are inadequate charging stations and the
insufficient government incentives for the purchase of EVs.

Polish Governmental Plans in EV Development
The government aims to drive development of the EVs to increase competitiveness of local
production, upgrade infrastructure and come up with new mobility business models.
Electric Vehicle Market – Governmental Vision, Poland, 2016-2025
Electromobility Development*
Local production to
add 30% of value Charging Infrastructure
1 Million EVs by 2025
and Smart Grid
Technological
Creation of the
Development upgrade and
Polish domestic market
of a Polish electric development of
of electric buses of
bus, which will be new urban business
$634.5 million with
competitive on the models and
1,000 of annual
global market charging
e-bus sales
infrastructure
*As part of the electomobility development initiatives, the Electromobility Plan was approved by the Council of Ministers of Poland on the
16th of March 2017 and consists of aims and directions to achieve by 2025.
Source: Ministry of Energy of Poland, Ministry of Development of Poland, Frost & Sullivan

Electromobility Market Drivers and Restraints in Poland
The Electromobility Act that went in force 22nd of February 2018 includes various incentives for EV users.
Nevertheless, the regulations are still to be implemented after validation of the law by the EU authorities.
Drivers in the Automotive Sector, Poland, 2017 Restraints in the Automotive Sector, Poland, 2017
1–2 3–4 5–9 1–2 3–4 5–9

Drivers Drivers
Years Years Years Years Years Years
Government plans and legislation H H M High price of EVs on the market H H M

Projected incentives for EV users H M M Lack of sufficient charging point
H M M
infrastructure
Investments in developing charging
H M M
point infrastructure Underdeveloped service and
H M M
maintenance network for EVs
New mobility business models
H M L
involving EVs Lack of implemented incentives
H M L
for EV users
Creation of industry clusters and R&D
M M M
centers to develop local EV industry Energy grid requires modernization M M M
Impact Ratings: H = High, M = Medium, L = Low Source: Frost & Sullivan Impact Ratings: H = High, M = Medium, L = Low Source: Frost & Sullivan
• Abolishment of excise duties on EVs, depreciation allowance for EVs for

legal entities up to €30,000
• Possibility of EVs using bus lanes and parking for free in paid parking zones in cities
• Introduction of zero-emission zones in cities to which only zero-emission vehicles
can have access
Incentives for • Special app that shows locations, availability, and prices of charging points on a map
EV Users from the
• If an EV has a special energy counter connected with a household, the charging costs will
Electro mobility and
be included in the monthly electricity bill.
Alternative Fuels
Act, 2017 • Unlike Western European countries, the Polish government does not plan to include
direct cash incentives for EV purchase

Electric Vehicle Market – E-mobility Ecosystem in Poland
Poland has a strong local technical base and the production capabilities to develop electromobility
solutions. The Electromobility Plan will have a positive impact on all the industries engaged in e-mobility.
Operation/Sales Operation and Production Production
OEMs and BMW, Mitsubishi, Tesla, Solaris Bus & Coach, Ursus Market Gap/Opportunity to create an
Distributors Nissan, Volkswagen Electric Vehicle
KOMEL, SKB Drive Tech, Boryszew,

EV Parts
Suppliers Enika
Impact Clean Power Technology, LG

Battery
Suppliers Chem, BMZ
Chemical DuPont, SABIC, Grupa Azoty,

Industry Boryszew
Charging Greenway, EneGIVE, Tesla, ABB Ekoenergetyka, MEDCOM, Garo, KZŁ

Stations Innogy, Enspirion Bydgoszcz, Enelion, PGE
Utilities PKN Orlen, PGE, Energa,

(Energy + Oil Innogy, Grupa Lotos, Enea,
and Gas) Tauron
T-matic, EneGIVE, Electronics Companies

IT Suppliers Enelion, Atende, Software Companies
Sygnity Telecommunications Companies
Note: The list is not exhaustive, includes only selected companies . Source: Frost & Sullivan

Opportunities for India
Battery Eco-system

Indian-Polish Trade and Cooperation Case Studies
There are recent cases of partnership between Indian and Polish automotive producers, which showcases
the trade and technological cooperation on the territory of Poland and India.
Bajaj Two- and Four-Wheelers in Poland Joint Venture: Solaris Bus & Coach and JBM Auto
• Bajaj, an Indian global motorcycle • At the Auto Expo 2018 show, a joint venture
manufacturer, has established partnership between Polish bus manufacturer Solaris Bus
with Polish motorcycle manufacturer & Coach and Indian firm JBM Auto presented
Romet in 2017. a new fully electric bus ECOLIFE Electric. The
• The partnership opened an opportunity for joint venture was formed in 2016 to support
Bajaj to distribute and sell its products in Indian government`s vision of a transition to
Poland and other European countries, cleaner transport.
where Romet had established presence. • Solaris Bus & Coach provided electric bus
technology, while JBM Auto brought local
market knowhow and manufacturing facilities
to produce 2,000 buses a year.
Two-wheeler, Dominar Four-wheeler, Qute Electric Bus, ECOLIFE
Image source: www.bajaj.pl Image source: www.jbmbuses.com/jbm-electric-bus.htlm

Indian-Polish Trade Barriers
Besides 6,162 km of distance between Poland and India, the main trade barriers include unstable legal and
tax environment and EU standards in relation to car emissions and quality.
Distance: 6,162 km
Unstable Legal and Tax Emission and Quality

Environment in Poland Standards in Europe
• According to a recent Frost & • As a member of the EU, Poland

Sullivan study, 61% of Polish has to comply with Euro 6 emission
automotive industry participants standards, which sets limits for
find the main challenge in exhaust emissions of carbon
automotive parts industry to be monoxide, nitrogen oxides and
unclear and unstable legal and tax other harmful chemicals in all
environment. manufactured cars since 2014.
• Other issues that hinder the • Quality standards are set by
development of the automotive European vehicle manufacturers,
industry are slow administrative which require ISO/TS 16949
processes and long waiting period certification from all suppliers of
for public support programs. automotive parts and components
they work with.

Key Opportunities for Indian Investors in Poland
Frost & Sullivan has identified four areas that represent an opportunity for Indian investors to capitalise on
the developed infrastructure, technological, and production capabilities of the Polish automotive market.
Electric Vehicle (EV) Market Low-Cost Used Passenger Car Market
• Poland has networks of both suppliers and manpower • With over one million used cars being imported every
that can facilitate the entry of Indian manufacturers into year, Poland and other countries in the CEE region
the emerging electric vehicle (EV) markets of Poland, and represent large markets for used vehicles, with an
Europe at large. average price of around €7,000.
• As Indian companies explore EV opportunities, they • Indian manufacturers can embrace this opportunity and
might consider choosing Poland as their manufacturing use a nearshoring strategy to locally produce new cars
hub as this will allow them to sell EVs not only in Poland, with the same price range for sale in Poland and
but also in other European countries. neighbouring CEE countries. Moreover, spare parts for
the aftermarket can be imported into Poland as there is
rising demand for servicing used cars.
R&D and Automotive Parts Production Hub Import and Distribution Hub for EU
• The Polish government promotes R&D investment and is • In 2017, more than 2 million m² of industrial real estate
very interested in encouraging innovative technology property was leased by logistics, manufacturing and large
firms to establish local operations. retail companies in Poland.
• Poland can be an automotive parts manufacturing hub • Indian companies can leverage Poland’s developed
wherein India can establish R&D and automotive parts industrial real estate sector to set up a regional
production facilities to supply to local Polish distribution hub targeting Polish and other European
manufacturers, and subsequently develop the markets..
capabilities to supply automotive parts and technology to • In this way, Indian investors can seize an opportunity to
the entire EU. import quadricycles, two-wheelers, and automotive parts
for the aftermarket.

Key Opportunities for Polish Investors in India
Considering the competencies of Polish companies, Frost & Sullivan identifies three areas of opportunity
for Polish investors in India: the EV market, the electronic parts aftermarket, and smart city technologies.
EV Market: E-Bus, EV Parts and Charging Infrastructure
• The Indian government is preparing a new policy to boost EV adoption and reduce transport emissions. Currently, the plan is
to ensure that one third of all passenger cars on the road by 2030 are EVs, which translates into 29 million EVs.
• This creates an opportunity for Polish E-bus and EV parts manufacturers to establish production facilities or to supply EV parts.
Another opportunity in the Indian EV market is in developing charging station infrastructure. Currently, there are only 209 EV
charging stations across all of India. A Finnish energy company is cooperating with IndianOil to build 150 more stations in
2018.
Aftermarket: Electronic Components Manufacturing
• India had 228.75 million vehicles in operation in 2017, and its auto components market is expected to grow at a CAGR of
10.4% during 2017-2020. However, genuine original parts account for only 25% of the total Indian aftermarket.
• Manufacturing of electric parts requires high hygiene standards because components are sensitive to dust and bacteria. As
Indian manufacturers are struggling to follow these standards due to lack of hygienic facilities, Polish companies can supply
high quality electronic parts to the Indian aftermarket.
R&D and Smart City technologies
• In Poland, T-Mobile first implemented its smart city technology in Kazimierz Dolny, a small Polish town Aerospace & Defense
Research Director that is a popular tourist attraction. Solutions include city monitoring, intelligent lighting systems, and 60 city
bikes as well as EVs, EV charging stations, and Wi-Fi hotspots. Another company that is a pioneer in smart transportation
technologies is ITS Polska.
• Poland can bring its R&D on rural development and smart city technologies to India. Implementing these technologies in rural
India will earn Polish companies a profit and will provide knowledge of smart city technologies to Indian operators.

Selected Automotive Events in Poland
Poland has many automobile and motorcycle exhibitions and show which are held on the annual basis.
Such events represent opportunity to connect with local manufacturers, suppliers and distributors.
28-31 March 2019,

Poznan
12-13 September 2018, Katowice
The largest motor show in Poland, held every

year since 2010. During the four days, new
More than 2000 attendees from 400 companies, models of passenger cars, commercial
150 speakers that will discuss the following topics: vehicles, trucks and motorbikes are
e-mobility, connected and automated driving, freight presented at the exhibition. Potentially more
transport and logistics, new means and business than 100,000 total visitors, 900 media
models of mobility, urban mobility, environment and representatives http://www.motorshow.pl/en/
energy storage, financing and investments.
https://impactcee.com/mobilityrevolution/2018/en 1-3 March 2019, Warsaw
15-18 November 2018, Warsaw
Approximately 60,000 visitors, 170

exhibitors, 23 premiers of new motorcycles
Premiers of new passenger cars, fleet and (6 types of motorcycles, including
leasing representatives, motorsport reams, quadricycles and scuters), and
automotive spare parts producers and representatives of motorcycle workshops.
distributors. https://warsawmotorshow.com/en/ https://motorcycleshow.pl/
Image sources: respective websites of events

Selected Automotive Events in India
India has many upcoming events that are focused on development of mobility solutions, innovative
technologies and local automotive industry.
18-20 January 2019, Gandhinagar
7 & 8 September 2018, New Delhi
Global networking platform with the intention

of sharing industry practices, innovations and
ideas for the purpose of “Shaping a New
The global summit of OEMs, automotive parts India” and defining country`s further
manufacturers, logistics and supply chain economic development. 33,000+ participants
representatives, innovative mobility startups, from various industries, including
manufacturers of batteries and charging stations. engineering, renewable energy, and road
The objective is to showcase the latest innovations transport. https://www.vibrantgujarat.com/
in the field of mobility, exchange ideas and acquire
new contacts. http://movesummit.in/ 14-16 February 2019, New Delhi
22-23 September 2018, Indore
The trade fair, which focuses on auto parts

and components production, is organized
India`s largest exhibition of passenger cars, two- for modernization of automotive industry
wheelers, commercial vehicles, and three- through exchange of latest technologies,
wheelers. The event is organized since 1998 and processes and systems.
expects to host 250,000 visitors in 2018. https://www.tradefairdates.com/Automotive
-Engineering-Show-M9758/New-Delhi.html
Image sources: respective websites of events

Glossary of Abbreviations
The list and explanations of all abbreviations used in the report.
Abbreviation Explanation
BEV Battery Electric Vehicle
CEE Central and Eastern Europe
CV Commercial Vehicle
EV Electric Vehicle
EU European Union
GDP Gross Domestic Product
ICE Internal Combustion Engine
LCV Light Commercial Vehicle
OECD Organisation for Economic Cooperation and Development
OEM Original Equipment Manufacturer
PHEV Plug-In Electric Vehicle
PV Personal Vehicle
R&D Research and Development
WTO World Trade Organization

Legal Disclaimer
Frost & Sullivan is not responsible for any incorrect information supplied to us by
manufacturers or users. Quantitative market information is based primarily on interviews and
therefore is subject to fluctuation. Frost & Sullivan research services are limited publications
containing valuable market information provided to a select group of customers. Our
customers acknowledge, when ordering or downloading, that Frost & Sullivan research
services are for customers’ internal use and not for general publication or disclosure to third
parties. No part of this research service may be given, lent, resold or disclosed to
noncustomers without written permission. Furthermore, no part may be reproduced, stored in
a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without the permission of the publisher.
© 2018 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan.
No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

CONTACT DETAILS
Commercial Wing ,
Embassy of India, Warsaw
T +48 225400022
E comwing.warsaw@mea.gov.in
Polish Investment & Trade Agency, Mumbai office

T +91 97 69 70 73 46
E ada.dyndo@paih.gov.pl
Frost & Sullivan Spółka Akcyjna Oddział w Polsce

Warsaw,
T +48 22 481 62 67
E poland@frost.com

360 Perspective of The Automotive Industry in Poland - Final (Updated)

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

360 Perspective of The Automotive Industry in Poland - Final (Updated)

Hochgeladen von

Copyright:

Verfügbare Formate

360° Perspective

Automotive Industry in Poland 13

Trends in the Automotive Industry

Opportunities for India 39

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 2

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 3

General Information, Poland Quick Snapshot, Poland

 Poland remains the leading country in the CEE region in terms

 Poland is ranked 3rd in the CEE region in terms of motor

 Poland is ranked 5th in the EU and 2nd among CEE countries in

 Following trends in Western countries, the Polish government is

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 4

# Country 2016 2017 # Country 2016 2017

enterprises in the country. 5 1,237 1,311 13 239 252

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 5

USD, Billion USD, Billion

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 6

• Harmonization of the Polish law with EU regulations

» EU development funds of €67 billion » New national-conservative

» 2008 - FDI drops significantly to » EU cohesion funds » 2016-2018 – the

2004 2006 2008 2010 2012 2014 2016

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 7

Main Investors in Poland’s Automotive Industry, 2014-2018

VW has recently opened a consequent

First in Poland Mercedes-Benz engine

Largest EV battery factory in Europe, to be

A production extension of one of the VW

Production of small electric motors and

In 2005, Escorts Group acquired 100% of

Source: Frost & Sullivan, PAIH

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 8

The share of automotive products in total imports is

Import value Share in total import

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 9

Automotive exports play an important role in Polish

Export value Share in total export

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 10

Political Factors Impact

Member of the EU, OECD and WTO High

Conservative government supports foreign investors by providing tax incentives High

The level of bureaucracy in the legal procedures is high Moderate

Economic Factors Impact

Automotive industry attracts large foreign direct investments High

Poland is largest beneficiary from the EU funds High

Social Factors Impact

Well qualified labour force Moderate

1.5 million students graduate every year Moderate

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 11

Technological Factors Impact

R&D centers are present in all major cities High

Government is encouraging electromobility and EV charging network development High

Demand for innovative solutions from the automotive sector Moderate

Environmental Factors Impact

Poland complies with Kyoto protocol Moderate

The country follows EU environmental requirements Moderate

Legal Factors Impact

Domestic contracts must be written in Polish language Moderate

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 12

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 13

Passenger and Light Commercial Vehicle Sales, Europe, 2017

Note: Sales data published by respective automotive associations of

Commissioned by Embassy of India, Warsaw. Study prepared by Frost & Sullivan. 14

Passenger and Light Commercial Vehicle Production, Europe, 2017