VW Group sales fall 3.7% in July as China, Russia and Brazil weaken
Volkswagen Group delivered 792,100 vehicles globally in July 2015, down from 822,200 a year earlier, as demand slumped in China, Russia and Brazil.
Volkswagen Group saw its global vehicle deliveries drop 3.7% year-on-year in July 2015, with 792,100 vehicles handed over to customers compared to 822,200 in July 2014. The group attributed the decline to persistent weakness in China, Russia and Brazil, which outweighed gains in Europe and North America.
Emerging market pressures drag on sales
China, the group’s single largest market, recorded a 5.3% fall in deliveries for July. Although the percentage drop was less severe than in other regions, the high volume, over 2.2 million vehicles delivered so far in 2015, meant the impact was substantial. Russia’s market slump was even more pronounced, with new registrations plunging 40.3%. In Brazil, Volkswagen Group deliveries dropped 30.6% as the country’s economic crisis deepened. These three markets together accounted for the bulk of the group’s global decline, reflecting broader industry trends in emerging economies.
Volkswagen Passenger Cars hit hardest
Among the group’s brands, Volkswagen Passenger Cars posted the sharpest decline, with July deliveries down 6.9% to 457,800 units. The brand’s reliance on emerging markets left it exposed to the downturns in China, Russia and Brazil. Other group marques fared better: Audi, Porsche, Škoda and SEAT all saw either stable or increasing sales over the same period, with SEAT up 7.1%.
| Brand | 2015 sales (Jan–Jul) | 2014 sales (Jan–Jul) | Change |
|---|---|---|---|
| Volkswagen Passenger Cars | 3.40 million | 3.56 million | -4.3% |
| Audi | 1.05 million | 1.01 million | +4.0% |
| Porsche | 134,700 | 104,900 | +28.5% |
| Škoda | 627,100 | 605,300 | +3.6% |
| SEAT | 251,300 | 234,600 | +7.1% |
| VW Commercial Vehicles | 256,600 | 255,400 | +0.4% |
| MAN | 58,600 | 67,500 | -13.2% |
| Scania | 43,400 | 42,000 | +3.2% |
European demand offers partial relief
Volkswagen Group’s European operations provided a counterweight to the emerging market slide. Deliveries in Europe reached 2.45 million vehicles for the year to date, with Western Europe accounting for 1.32 million and Germany 781,700. Central and Eastern Europe posted growth, helped by stronger demand in the Czech Republic, Romania and Hungary, but this was not enough to offset the steep losses in Russia. North America also showed modest growth, but the overall global picture was dominated by emerging market weakness.
Outlook for the rest of 2015
Volkswagen Group expects market volatility to persist through the second half of 2015, with the patchy development of key regions remaining a major factor. While European and North American demand may continue to provide some support, the group’s exposure to China, Russia and Brazil leaves it vulnerable to further downturns. The company’s management has signalled that it does not expect a rapid recovery in these markets in the short term.
For more on the Chinese market’s impact on global car sales, seeChina car sales fall for third straight month as economy slows.
