Automotive aftermarket industry in Poland

The automotive aftermarket industry in Poland includes two segments: accessories and car parts that have been manufactured or reconditioned to replace the original components if they are damaged or worn out.

There are two types of companies operating in the aftermarket. These are producers who manufacture spare parts and their distributors. In Poland, the independent sector has the largest share in the market of spare parts for cars, in which manufacturers deliver their products to the secondary market – both to independent distributors of parts and authorized service stations of car manufacturers which, however, are not so popular.

Overview of the automotive aftermarket industry in Poland

In 2019, the market slowed down due to fears of a recession in Germany as well as Brexit. Despite this, the results of the automotive aftermarket industry in Poland after 3 quarters of 2019, compared to the same period in 2018, increased in the case of their distribution. On the other hand, the operating results of enterprises producing car parts in the same period decreased or did not change in the case of 60% of the surveyed companies. It is estimated that at the end of 2019, the value of production of automotive parts and accessories in Poland amounted to over PLN 91 billion, of which as much as PLN 52 million is the value of exports.

Due to the COVID-19 pandemic, the automotive spare parts market has weakened, as has the entire automotive industry. In 2019 in Poland, domestic and foreign sales of automotive parts reached PLN 24 million. Despite this, the industry, due to its specificity, did not record such significant losses as, for example, the segment of new car sales. Most of the sales, however, shifted to online channels.

Currently, the automotive aftermarket industry in Poland is growing. In 61% of manufacturers of spare parts for cars, the company’s revenues in the first quarter of 2021 increased compared to the previous quarter. For 22% of companies, they remained at the same level. At the same time, only 17% recorded a loss.

The situation in the automotive aftermarket industry

In the first and second quarter of 2020, spare parts sales decreased, but a recovery followed this period. During this period, the profile of the products sold changed. Due to the pandemic, there was an increase in sales of used cars, which began to be perceived as the safest means of transport. This, in turn, increased demand for parts for cars that are used and with high mileage. In addition, after the initial downtime, there was a need for electrical parts and batteries, i.e. those related to vehicle start-up. In the following months of 2021, an increase is expected due to the demand for more significant, more expensive repairs, which car users have so far postponed due to the uncertain economic situation.

Automotive aftermarket industry leaders in Poland

In the case of manufacturers of car spare parts, the following companies are recognized as Polish industry leaders:

• Warszawskie Zakłady Mechaniczne “PZL-WZM” S.A.,
• ASMET Sp. z o.o.,
• TOMEX Brakes Sp. z o.o. Sp.k.

When it comes to selling spare car parts in Poland, the following companies are in the lead:

• Inter Cars S.A.,
• Auto Partner S.A.,
• Moto Profil Sp. z o.o.,
• Groupauto Polska Sp. z o.o.

Changes in the automotive aftermarket industry in Poland

Producers of spare parts see the growing costs of production and transport as well as shortages of raw materials and semi-finished products as the greatest threats to their operations. It is related to the big problem that is currently the lack of steel. Its reasons include the duty imposed on this raw material by the European Union in 2019 and the COVID-19 pandemic, which caused the temporary shutdown of production. In the case of semi-finished products, shortages are caused by the increase in sales and production of consumer electronics.

Significant losses related to the pandemic were felt by manufacturers from the OEM (Original Equipment Manufacturer) market, who provided them for the production of new cars for the so-called first assembly. Therefore, plants supplying original parts, but not under the car manufacturer’s brand name, may be interested in increasing their activity in the spare parts market, which recorded smaller declines during this period. It could pose a potential risk to manufacturers in the aftermarket segment. 26% of companies see an opportunity for faster development due to the increase in the number of electric vehicles in the Polish car park, and 41% believe that this change is not essential for them.

As far as distribution is concerned, there is an evolution in the way of selling. The existing car exchanges and brick-and-mortar stores are replaced by online stores, which take over an increasing part of sales. In addition, there is constant consolidation in the market. Larger companies expand their distribution network not only by organizing new branches and warehouses but also by absorbing smaller businesses. A third of aftermarket parts distributors perceive the growing popularity of electric vehicles as a threat. Despite this, as many as 82% of the surveyed distributors predict an increase in the company’s revenues in 2021 compared to the previous year.