Monday, February 15, 2021

Analysts: Polish automotive industry on the fast track to reconstruction

 The automotive sector was one of those hardest hit by the adverse effects of the pandemic. According to data, in 2020, global demand for new light cars decreased by 14%. Moreover, of the three leading auto markets - the United States, China, and Europe, the latter saw the deepest, 20% decline.

Although the Covid-19 pandemic has, without exception, affected all the countries that are leading automotive producers in Europe, Poland fared best among them. Even though in the whole of 2020, sold production of the industry decreased by 13.5%, it is worth noting that in the second half of the year, it increased by 9% compared to the same period of 2019. This increase took place with the declining volume of car production, which suggests high production of components and engines.

There are many indications that this year's global demand for new cars will not return to pre-pandemic levels. Still, domestic manufacturers of auto parts remain optimistic. In a survey conducted by Santander Bank Polska, 66% of respondents predict an increase in revenues in 2021 compared to 2019. Only 17% of respondents perceive low demand as a potential threat.