The document discusses the automotive market in Poland. Some key points: - Poland has over 38.5 million citizens and accounts for 24% of the Central and Eastern European (CEE) region's population and GDP. Its economy has been steadily growing in recent years. - The Polish automotive market saw over 23 million vehicles registered in 2013, with passenger cars making up about 75% of the total. Used car imports are still about 2.5 times higher than new car registrations. - There are approximately 4,100 vehicle technical inspection stations in Poland. Inspections are required annually for most vehicles and follow an interval schedule. Stations must meet certification requirements. - Inspection prices

1. 1
Polish automotive
market
September 2014

2. 2
Why Poland?
Polish automotive market
Vehicle technical inspection market
Pros and cons of X company
Possible scenarios for entering the Polish market
Automotive market of CEE countries
Table of content

3. 3
Why Poland?

4. 4
Strategis located in centre of Europe and this factor alone should be enough to demonstrate the
great potential of country.
There are more than 38.5 milion Polish citizens
Poles account for 24% of the (CEE) regions population and produce nearly 40% of its GDP
According to World Investment Report 2013 Poland will be in the next two years 4th in Europe
and 14th the worlds most attractive economy
Stable and growing economy, according to the EUROSTAT estimates for 2013 Poland was one of
the fastest growing countries in EU, while on the average the size of GDP in the EU did not
increase in 2013 at all. Polish economy grew by 4,3%.
Why Poland ?

5. 5
Forecast for Poland is also optimistic for 2014 and 2015 (2,5%-2014 and 2,9%-2015 while the
growth forecast for EU as a whole 1,4%-2014 and 1,9%-2015).
Human capital - the quality of Polish scientific and technical thought is conformed by the fact that
largest global corporations tend to locate their R&D centers in Poland
Significant European Market – 30th the largest in the world and 6th the most populated country in
the Union and the biggest market in the region of Central and Eastern Europe
Strategic sectors: automotive, aviation, BPO/SSC, electronics, energy, food industry, IT and R&D.
2,5%
2,9%
1,4%
1,9%
0%
1%
2%
3%
4%
2014 2015
Poland
EU
Why Poland ?

6. 6
Polish automotive market

7. 7
Recent forecast suggest the CEE market will account for approximately 5 million light
vehicles by 2012, compared to WE at 15 million.
While the CEE market looks small compared to WE, it will return to being the engine for growth
once European economies recover from downturn and the accession states benefit from EU
investment.
In many countries, particularly CEE, the level of car ownership suggest considerable
opportunities for growth.
Also, new safety and environmental regulations working as a plus for creation the bigger and
stronger service (also PTIs) market.
Polish automotive market

8. 8
Major vehicle manufacturers in Poland
passenger cars and light vans
buses
trucks
Polish automotive market
Source: PAIiIZ, 2013

9. 9
16.701,1
16.815,9
18.035,0
19.471,8
21.336,9
22.024,7
23.037,1
23.852,5
11.975,2
12.339,9
13.384,2
14.588,7
15.079,5
15.494,7
17.239,8
17.871,8
71,7% 73,4% 74,2% 74,9% 75,4% 74,9% 74,8% 74,9%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2004 2005 2006 2007 2008 2009 2010 2011
Motor vehicles in Poland [000 units]
motor vehicles of chich passenger cars share of passenger cars
Source: CSO
Motor vehicles park in Poland

10. 10Source: CSO
Import of used cars in the years 2003 - 2013 on the background of the sale / registration of new cars
Import of used cars
in 2013 Poland imported 712 thousand of used car, and since the entry to the EU over 8
million
there is still more imported used cars by nearly 2.5 times more than a new registered
0
200
400
600
800
1000
1200
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
thousand
import of used cars new cars

11. 11Source: CSO/*PZPM analysis based on CEP
Age structure of passenger car park
19,4 12,7 11,5 11,6 12 11,7 10,8 10,756 61 63,3 66,1 68,1 69,8 72,3 73,7
0
10
20
30
40
50
60
70
80
2004 2005 2006 2007 2008 2009 2010 2011
Age structure of passenger car park (%)
up to 5 years more than 10 years

12. 12Source: Analysis of PZPM, CEP, CSO
Age structure of the cars
10,3%
16,7%
15,3%
17,2%
74,4%
66,1%
0% 20% 40% 60% 80%
cars
trucks and tractors
over 10 years
6-10 years
0-15 years
As of the end of 2012

13. 13Source:
Age of cars registered in Poland
18,2%
10,2%
25,2%
11,8%
56,6%
78,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2012
10 years and more
4 - 9 years
up to 5 years

14. 14
Vehicle technical inspection market

15. 15
General information’s
In Poland there's an annual inspection requirement for most vehicles. New passenger car vehicles (of age 4
or less) have to be inspected according to the following intervals 3-2-1 years (for trucks each year and buses
after year and then each 6 months). Inspections are performed by accredited garages. The inspection
includes checking of main car systems like brakes, suspension, lights and steering, as well as emission and
presence of mandatory equipment. An additional, separate inspection is required for cars that are running on
LPG and TAXi
Number of vehicle inspection stations: approximately 4,100 (1,800 of which are equipped to provide
diagnostic services to vehicles weighing up to and above 3.5 tons(trucks station) and 2,300 of which are
equipped to provide diagnostic services to motor cars and motorcycles not exceeding 3.5 tons).
Each station and inspectors have to be certificated and approved by governmental department TDT Technical
Transport Supervision.
There are many requirements concerning technical equipment, building, number of parking places e.t.c, all
requirements are described in Governmental Monitor Polski no 40/2006 item 275.
Vehicle technical inspection market

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Short (gross –with 23% of VAT) prices list and profitability
Vehicle technical inspection market
Official fix prices: unchanged during the last 7 years PLN EUR* (c.a.)
for car inspection: 98 23,6
for truck inspection <16T 153 36,9
for truck inspection >16T 176 42,4
for bus inspection 199 48
additionally LPG installation (total inspection cost 98PLN plus 63PLN) 63 15,1
additionally Taxi (total inspection cost 98PLN plus 42PLN) 42 10,1
additionally from each PTI is paid to the Government IT system named CEPIK 1 0,25
Average level of mature station EBITDA – 40%-45%
*1EUR=4.15PLN (EUR/PLN exchange rate is flexible)

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