Polish Automotive Production Dips as Employment Hits Nine-Year Low

Vehicle Production Slump Offsets Parts Growth

The overall dip in production was driven primarily by the vehicle and engine segment, where results fell 4.3% to 46.7 billion PLN. This contraction outweighed gains in other areas of the PKD 29 group (manufacture of motor vehicles, trailers, and semi-trailers). Producers of trailers and semi-trailers saw a significant increase of 13.2%, reaching 4.27 billion euro.

The parts and accessories segment (PKD 29.3) remained a pillar of the industry. This sector generated 62.9 billion PLN in sold production, a 1.9% increase over the first half of 2025. Within the group of medium and large enterprises (those employing more than 49 people), sold production totaled 113.9 billion PLN, representing a slight year-on-year decrease of 0.3%.

Employment Drops to 2017 Levels

Labor force reductions in the automotive sector have accelerated. Average employment in plants employing more than nine people stood at 192.6 thousand by the end of the first half of 2026, a decrease of 7.1 thousand jobs compared to the previous year. Rafał Orłowski noted that this reduction is more than two and a half times larger than the 2.7 thousand-job cut recorded in the same period a year prior.

The current employment level is the lowest recorded in nine years. The impact was most severe among parts and accessories manufacturers (PKD 29.3), where employment dropped 4.5% to 137.7 thousand, down from 144.1 thousand in the first half of 2025. In contrast, employment in vehicle and engine plants (PKD 29.1) rose by 1% to 35.1 thousand, while bodywork and trailer producers (PKD 29.2) saw a marginal increase of 0.3% to 12.1 thousand employees.

Export Values Decline Amid German Market Weakness

Automotive exports totaled 22.8 billion euro in the first half of 2026, a decrease of 4.91% (1.1 billion euro) compared to the first half of 2025. While the year began with double-digit declines, Orłowski reported that the trend improved monthly, with June marking the first growth since December 2025.

Germany remains Poland’s primary trading partner, accounting for 33.8% of total automotive exports with goods valued at 7.47 billion euro. However, exports to Germany fell by 9.31%. Other key markets also saw declines:

• France: 1.73 billion euro (7.87% of total), down 1.53%
• Czech Republic: 1.7 billion euro (7.70% of total), down 1.35%
• Italy: 1.28 billion euro (5.83% of total), down 18.96%

Component Exports End Record-Breaking Streak

For the first time in several years, the export of automotive components failed to set a new record for the first six months of the year. Export value for parts and accessories was 9.42 billion euro, a slight decrease of 0.37% from the 9.45 billion euro recorded in the first half of 2025. Despite the value dip, the share of components in total automotive exports rose by 1.95 percentage points to 42.7%.

EU markets continue to dominate Polish automotive trade, receiving 84% of total exports, though this is a 4.56% decrease from the previous year. When looking at total industry exports, the EU share stood at 86.91%, a slight dip of 0.47%.