Getting into gear

March sales of new cars were up 20 percent on February, according to market research agency Samar. The company said that Poles bought 21,658 new cars last month, the highest figure since June last year. Despite the sharp rise, this figure still represents a nine- percent fall on March 2005.

"The rise in new car sales is not only thanks to the 'spring season effect' but also due to falling prices following special offers by car dealers," Samar said in a statement.

Poles were attracted to the showrooms by special offers and concerns over the falling value of the złoty. The current political instability has led to worries that a weaker złoty will push up car prices. In March, the złoty fell five percent in relation to the euro.

The large-scale import of used cars from Western Europe continues to affect the market. Samar estimates that since joining the EU in May 2004, when restrictions to imports were dropped, Poles have bought two million used cars as opposed to half a million new ones.

According to Samar, in the first quarter of this year, Japan's Toyota was market leader, selling 7,791 cars, followed by Volkswagen's Czech unit Skoda with 6,735 cars and GM's Opel with 6,614. (Reuters)