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    Rising Costs and Policy Hurdles Dampen Electric Car Affordability in Poland

    Electric vehicles (EVs) in Poland are facing a challenging market environment, with subscription costs for electric cars now considerably higher than those for traditional internal combustion engine vehicles. This shift marks a significant reversal from just two years ago, largely influenced by changes in global politics, according to “Puls Biznesu”.

    Michał Knitter, co-founder of the Carsmile platform, has observed that while the average cost of using an electric car measured by lease rate was slightly lower than that of a comparable gasoline-powered vehicle in March 2022, this is no longer the case. Despite electric cars having a catalog price nearly half as high as their gasoline counterparts at that time, their leasing rates have now lost their competitive edge.

    Further complicating the issue, traditional automotive industry does not seem motivated to boost electric vehicle sales. The industry’s lobbying efforts aim to delay the EU’s deadline for ending the registration of new gasoline-powered vehicles, which indirectly affects production. Additionally, there is an ongoing battle against inexpensive Chinese electric cars, perceived by Western manufacturers as unfair competition.

    Carsmile’s analysis of 12 matched pairs of electric and traditional vehicles reveals that, on average, subscribing to an electric vehicle is approximately 274 PLN more expensive—representing a 9% increase over its gasoline counterpart, despite the electric vehicle’s higher catalog price by 16%.

    Knitter also pointed out a discrepancy in pricing policies from importers and dealers, which do not favor electric drives: the average discount for electric vehicles in the study was 6%, compared to 12% for gasoline vehicles. This price advantage for traditional cars is attributed not only to pricing policy but also to deteriorating financing conditions for electric vehicles, expected to depreciate faster than previously anticipated.

    Despite these hurdles, the number of electric vehicles on Polish roads continues to grow. As of June 2024, Poland had 119,297 electric passenger cars, with battery electric vehicles (BEVs) accounting for 62,125 units and plug-in hybrids (PHEVs) numbering 57,172. The fleet of electric commercial and heavy vehicles stood at 6,926.

    The Polish Association of the Automotive Industry (PZPM) and the Polish Association for New Mobility (PSNM) report a 7% increase in electric vehicle registrations in the first half of the year compared to the same period in 2023. Import of used cars is also rising sharply, while new registrations maintain last year’s levels.

    With the anticipated launch of funding programs for zero-emission vehicles under the National Recovery Plan, there is cautious optimism about future growth in the electric vehicle sector. Programs like “Mój Elektryk” (My Electric) and incentives for building electric vehicle charging infrastructure are expected to play crucial roles.

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