VW Suffers From Weak China Business

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-11-27 05:39

The weak car markets in China and South America are burdening VW sales. It fell 4.3 percent in March.

The group delivered 998,900 vehicles to its customers worldwide in March, as the company announced on Friday. In the first quarter, the decline of 2.8 percent to around 2.6 million vehicles was less.

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In China, the largest single market, Volkswagen reportedly performed better than the overall market with a 9.4 percent decline to 324,900 units. In the first three months, the decline there was 6.3 percent, 946,600 vehicles were delivered.

Reluctance to buy in China

In view of the trade conflict with the USA, the Chinese market is dampened by consumer reluctance to buy. In addition, there is a VAT reduction that has been in force since April. Group sales director Christian Dahlheim emphasized that it had succeeded in gaining shares in a declining world market. He spoke of high order backlogs - Volkswagen is “a little more optimistic”, especially on the second half of the year.

On the German home market there was an increase of 2.4 percent to 133,100 units in March. In the first quarter, VW delivered 337,200 vehicles here, 2.2 percent more than a year ago. The USA (plus 8.2 percent) and Brazil (plus 3.9 percent) in particular performed well during the month. Among the brands, VW Passenger Cars left springs in March with a decline of 7.2 percent to 542,700 deliveries, in the first quarter the decrease was 4.5 percent to around 1.46 million units. The sports car subsidiary Porsche slumped in deliveries in March by 10.6 percent to 20,900 cars. (dpa)