Volkswagen global sales hit as emissions scandal bites
Volkswagen saw registrations fall sharply in Japan and South Korea in September, with the diesel emissions scandal undermining its position in key Asian markets.
Volkswagen’s global sales momentum faltered in September as the diesel emissions scandal began to hit its performance in key Asian markets. New registrations for the VW brand in Japan fell by 9.1 percent last month, according to data from the Japan Automobile Importers Association. In South Korea, deliveries also turned negative, with the company citing a “limited impact” from the scandal but still reporting a drop in sales.
The fallout from the dieselgate scandal, which broke on 18 September and involves 11 million vehicles worldwide, is starting to erode consumer confidence in Volkswagen outside Europe and North America. In Japan, where VW had been the top import brand for 16 years, Mercedes-Benz overtook it for the first time, helped by a 13 percent rise in Mercedes registrations over the first nine months of the year. VW’s own sales in Japan dropped 12 percent in that period.
Impact in South Korea and Japan
South Korea has been a crucial market for Volkswagen, particularly for its diesel models, which had underpinned its growth against domestic rivals. The company said the impact of the emissions scandal was so far limited, but September’s figures showed a clear reversal of fortunes. While VW deliveries fell, Audi, part of the Volkswagen Group, posted a 22 percent jump in sales, outpacing the overall 12 percent rise in imported car registrations in the country.
In Japan, Volkswagen moved quickly to reassure customers that no models with the illegal software had been imported. Despite this, the brand’s image has suffered, with its position as the country’s leading import marque now in jeopardy. The surge in demand for luxury imports, especially Mercedes-Benz, has further compounded VW’s difficulties in the market.
