VW Group car sales down 3.7% in July due to Russia, China and Brazil image

VW’s group sales went down 3.7 in July, mainly because of a weak auto market in China, Russia and Brazil and a decrease in the carmaker units’ volume.

Car sales of the group, which includes Audi, Porsche, Bentley, Volkswagen, Skoda and Seat, saw a drop from 822,200 units sold in July last year, to 792,100 vehicles this year.

Christian Klingler, head of the group’s sales, stated that “The overall economic situations in China, Russia and Brazil remain difficult. As before, the Volkswagen group has not been entirely immune to these developments at the beginning of the second half. In the second half of the year, we expect the patchy development of markets to remain a key factor in the various regions.”

Individually, the Volkswagen car sales saw a bigger fall of 6.9% in July, down to 457,800 units.

The reason for a decline in sales overall for the Group is that the markets in China, Russia and Brazil have not improved lately, putting a lot of pressure on global carmakers in terms of sales and stock shares.

Klinger explained on this topic that “The overall economic situations in China, Russia and Brazil continue to be tense. At the beginning of the second half of the year, the Volkswagen Group was not entirely immune from these developments. To a certain extent, we did experience a tailwind in North America and especially in Europe. In the second half of the year, we expect the patchy development of markets to remain a key factor in the various regions.”

The VW Group delivered 2.45 million cars in the European market up to this point in 2015, 1.32 million units in the Western Europe, 781,700 in Germany, and 354,400 in Central and Eastern Europe. Even if the latter has increased sales with more demands from the Czech Republic, Romania and Hungary, it was not enough to create a balance for the hole Russia made, where new registrations plunged 40.3%. Another big fall was taken by VW in Brazil where sales declined 30.6%, contributing to an already tense situation in South America.

The downturn in China did not spare VW, where deliveries decreased 5.3% in the company’s unit largest market. Even if the percent is smaller here in comparison with Russia and Brazil, the volume of sales here is of 2.2 million, leading to a bigger fall.

  • Volkswagen Passenger Cars: 3.40 (3.56; -4.3 percent) million vehicles
  • Audi: 1.05 (1.01) million vehicles
  • Porsche: 134,700 (104,900) vehicles
  • Skoda: 627,100 (605,300) vehicles
  • SEAT: 251,300 (234,600; + 7.1 percent)
  • Volkswagen Commercial Vehicles: 256,600 (255,400; +0.4 percent) vehicles
  • MAN: 58,600 (67,500; -13.2 percent) units
  • Scania: 43,400 (42,000; +3.2 percent) heavy trucks and buses

 

By Gabriela Florea