VW’s Store in Paris Believed to Have Zero Impact on Sales image

Analysts believe that VW’s plan to open a store on Champs-Elysees, in Paris will do little to increase its sales.

“Having a showroom on the world’s most famous avenue will have zero impact on sales,” IHS Automotive analyst Carlos Da Silva said.

But Volkswagen has other expectations from the store, which is part of its plan to almost double annual sales in France to 400,000 units by 2018. Da Solva says that the store will only make rivals Renault and PSA Peugeot Citroen more aware of VW’s presence in the country and its aggressive plan to gain more market here.

VW’s showroom will be located on Champs-Elysees, across Renault’s store and close to PSA;s dealership, and it is due to open at the beginning of 2013. Although in September sales were not so good for VW in France, it still managed to gain market share. During the first nine months of the year VW’s sales in France were down 5% to 208,114 units, but its market share was up 12.11%, compared with 11.05% during the same period last year.

PSA’s light vehicle sales dropped 17% to 532,877 units from January to September, and its market share also fell to 31.02% from 32.65% last year. Renault’s sales fell 17% to 423,213 units, and its market share also dropped 24.36%, compared with 25.67% last year.