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Automotive Industry in Poland: Features, Growth, Exports & Investment Support

The automotive industry in Poland accounts for a significant portion of the Polish economy. The following article will provide a brief explanation of the automotive industry in Poland.

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Automotive Industry in Poland

One of the most desirable places worldwide is to engage in the automobile industry in Poland. The nation has a lengthy history in the sector and reasonably priced, extremely skilled personnel to employ. 

automotive industry in poland

The automotive industry in Poland accounts for a significant portion of the Polish economy. The automotive sector in Poland accounts for around 4% of the Gross Domestic Product of the nation and contributes 11% of overall industrial production.

One of the most vital economic cornerstones is the automotive industry in Poland.

The following article will provide a brief explanation of the automotive industry in Poland.

Features of the automotive industry in Poland

  • The automotive sector in Poland is the second-largest industrial sector that comes after the food sector and makes up approximately 11.1% of the overall volume of the nation’s industrial production.
  • The automotive industry in Poland has received a sizable volume of foreign direct investment(FDI), and as a result, has grown into one of the crucial production centers for automobiles, automobile parts, and automobile accessories in Central and Eastern Europe.
  • With respect to the output volume, workforce, working capital, and exportation, the automotive industry in Poland has developed to become one of the most important sectors in the country.
  • Due to Poland’s growing per capita rates of cars, it’s the country’s biggest automobile marketplace concerning both sales and services.
  • The automotive sector in Poland benefits from a diverse range of factors, including workforce accessibility, R&D activities, geographical position, and government assistance.

Growth of the automotive sector in Poland

A few of the most favorable circumstances around the world for the growth of the automotive sector in Poland are:

  • Poland provides reasonably priced, skilled, and productive human resources which are really beneficial for the growth of the automotive sector in Poland.
  • Due to the minimal threat involved with maintaining a firm and unrestricted access to the European Union marketplace, Poland is considered as being among the five greatest destinations for automotive industries in all of Europe.

Key resources for the automotive industry in Poland

resources for the automotive industry in poland
  1. High levels of expertise and personnel accessibility Poland has the highest proportion of working-age adults with strong technological knowledge, including both in terms of quantity and quality. About 300,000 of the 1.4 million people studying engineering courses are a possible source of outstanding economic and qualitative outcomes for businesses operating in the automotive sector in Poland.
  2. Transportation facilities Poland has been actively expanding and modernizing its transportation infrastructural facilities including roadway, railways, aviation, and maritime transportation networks. The enormous investments made in the construction of port facilities, particularly those for containers, would also enable Polish ports to gain continuous links with the biggest boats from Asia and other parts of Europe.
  3. Electromobility- Poland is making an effort to keep up with recent developments in electromobility, ecological transportation, and car-sharing services. Poland has high aspirations for e-mobility, and the nation currently has a legal framework in order to support those aspirations. It is undeniably true that the nation’s proclaimed top concern is the growth and acceptance of electromobility.
  4. Financial Effectiveness- There are numerous chances for international businesses to get funding for ventures in Poland both from domestic and European Union sources, particularly direct monetary assistance and tax advantages.
  5. R&D Activity- The activities of major Research and Development facilities have a favorable effect on the growth of the areas in which they are situated. Poland’s highly regarded educational system and developed environment of university collaboration lay a strong platform for the growth of R&D centers.

Special Economic Zones(SEZs) participation in the automotive sector in Poland

In Poland, there are 16 voivodships functioning with 14 SEZs. The Special Economic Zones (SEZ) cover more than 20,000 hectares in aggregate. In terms of overall investment levels in SEZ, the automotive sector in Poland accounts for the highest proportion.

The Wabrzych Special Economic Zone “INVEST-PARK” is among the main active economic zones in the automotive industry in Poland. It was created in the year of 1997 and encompasses 174 Collectives in 3 Voivodeships in southwest Poland.

The automotive industry in Poland is growing in the southwest region of the country, along with adjacent businesses like plastics and metal manufacturing, in addition to logistics and storage operations for this field, due to investments from worldwide brands like Toyota, Mercedes, and Volkswagen.

Investment support in the automotive industry in Poland

The automotive industry in Poland has been made one of the top priorities of the Polish government.

The following are the main types of assistance in which entrepreneurs in the automotive sector in Poland are supported:

  • Investments made in Special Economic Zones(SEZs) are exempted from income taxes.
  • Real estate tax deductions are provided in accordance with regional laws relevant to the investment destination
  • Different employment assistance programs provided by regional Employment Agencies
  • Assistance provided through co-financed European Union projects promoting R&D activity (like Innomoto)
  • Tax credit available for R&D endeavors.

Exports by the automotive industry in Poland

The automotive industry in Poland is the core of the EU’s economy. Entrance to the European Union was extremely important for the automotive industry in Poland since up to 98% of manufacturing production is exported.

Passenger automobiles had the highest export worth of all automobile goods from Poland in 2019, at € 6.1 bn. Buses exports saw the largest growth in value in contrast to 2017 exports.

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Conclusion

The automobile sector in Poland holds a prominent position in the Polish economy as it contributes significantly to the nation’s GDP. The automotive industry in Poland is one of the crucial sectors of both the European and global economies.

For more queries regarding the automotive industry in Poland, you can consult Odint Consultancy. We will help you solve your queries.

FAQ’s

  • High levels of expertise and personnel accessibility.
  • Transportation facilities.
  • Electromobility.
  • Financial Effectiveness.
  • R&D Activity.
  • Investments made in Special Economic Zones(SEZs) are exempted from income taxes.
  • Different employment assistance programs.
  • Assistance promoting R&D activities.
  • Tax credit available for R&D endeavors.
  • Poland provides reasonably priced, skilled, and productive workforce personnel.
  • Poland has minimal threat involved with maintaining a firm in the automotive sector.
  • Poland is considered as being among the five greatest destinations for automotive industries in all of Europe.
  • The automotive sector in Poland is the second-largest industrial sector.
  • The automotive industry in Poland makes up approximately 11.1% of the overall volume of the nation’s industrial production.
  • The automotive industry in Poland receives a sizable volume of foreign direct investment(FDI).
  • With respect to the output volume, workforce, working capital, and exportation, the automotive industry in Poland has developed to become one of the most important sectors in the country.

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