Car sales plummet 25% in 2000; credit costs, weak euro, oil prices blamed

Auto sales in Poland dropped by 25% in 2000 compared with 1999. The 478,700 units sold barely exceeded the 1997 total. Analysts claim that the raise in excise tax from 2% to 6% was the main reason behind the plunge. According to the Economy Ministry, the high costs of credit, the weakness of the euro, and increasing oil prices are also to be blamed. Data gathered by Samar car market researchers also show new car imports were up by 13.6% over 1999 due to lowered custom duties, whereas sales from domestic output dropped by 38.7%. Samar also predicts a further 10% decrease this year. Other analysts, however, were not eager to make any predictions, given the uncertain fate of Daewoo-FSO, the sector’s biggest loser last year.(Rzeczpospolita Jan. 20-21, p.B1) M.K..