Volkswagen Group posted an unusual 0.5-percent year-on-year dive in global sales of its core VW brand in July to 466,100 vehicles, the carmaker has disclosed. This will be the second month that sales of the VW brand had dropped since December 2009. The brand logged a 38-month surge in sales since then, until it posted a 1-percent drop in March 2013.
Sales at VW brand rose in April, May and June, but dipped anew in July. VW sales chief Christian Klingler remarked that business conditions may remain tough for the auto industry that is currently hounded by weakening demand and excessive capacity. Klingler expects these conditions to continue over the coming months, adding the VW is “keeping a very close eye” on developments in global automotive markets.
Despite the dive in sales in July, VW brand still managed to log an almost 4-percent hike in global sales in the first seven months of 2013 to 3.38 million vehicles, thanks to a strong performance in China that allowed it to counteract slumping operations in Europe.
The carmaker logged a 9-percent drop in sales in Germany in the first seven months of 2013 to 328,400, as well as a 7-percent drop in pan-European sales 980,000 units.
The group managed to weather most of the sales slump in major markets in Europe thanks to its strong performance outside the region as well as to its wide-ranging model portfolio, which covers small fuel-efficient units to ultra-luxury vehicles. The brand accounts for around half of the group’s global deliveries. [source: Volkswagen]