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According to an annual report by the Samar Automotive Market Research Institute, last year was the worst for sales since 1991. The number of new cars sold in Poland came to just 235,500, and dropped dramatically especially in the second half of 2005.

Average monthly sales amounted to 21,500 cars in H1 but then plummeted to a mere 17,700 in H2. Advertising campaigns, usually launched by companies at the end of the year, did not bring in the expected results. The year's figures fell short of 2004's total by almost 21 percent.

"The market broke down mainly because the relationship between car prices and people's salaries is disadvantageous, so many can't afford even a relatively cheap car," says Wojciech Drzewiecki, CEO of Samar. "The second reason is instability in the area of taxation - Poles still do not know what rules apply as the law is constantly changed. [Also] growth in the second-hand car market is rapid."

Skoda is the market leader with 11.7 percent market share. Its sales decreased by 26 percent in 2005 against 2004's numbers. Toyota is next in line, with 10.9 percent, while Fiat was forced into third spot.

"2005 was extremely tough for all car distributors in Poland due to a dramatic decrease in sales," says Jacek Pawlak, Toyota Poland's general director. "2006 will be even tougher as the market is completely flooded with second-hand imports."