Samar reports double-digit drop in car sales for January-May period
New passenger car sales totaled 230,633 in the first five months of this year, 11% less than during the same period in 1999, according to a report published by Samar, the automotive market research company.
January's hike in excise taxes is the main reason for the sales decline, said Samar, but rising car-maintenance and insurance costs are also deterring would-be new car buyers. The decrease between May 1999 and this May was 26% alone, Samar said.
Despite the drop, Poland retained its eighth place among European countries in terms of car sales. However, while the country's car sales plunged deep into double-digit territory, auto purchases in Europe increased by 2.7% from May 1999 to May this year.
But Samar also pointed out that the Finance Ministry has not yet benefited from January's excise tax increases. Samar estimates show that while the budget gained about zl. 30 million ($6.8 million) more on excise duty income in May than it did a year ago, it lost zl. 43 million ($9.77 million) due to lower car sales. The result was a May budget loss of zl. 13.5 million ($3.06 million), according to Samar.
The small and mid-sized classes of cars were the hardest hit by the declining sales figures, losing 15% and 23% respectively from January-May a year ago.
"The greatest losses were recorded by those market segments where clients have the least money, and who also finance the purchase of a car to a great extent with a bank loan," stated the Samar report. Meanwhile, sales of luxury cars, mini vans and off-road vehicles increased during the same period.
