Volkswagen Sales In China Falls Along With WorldWide Sales; Despite increase In Europe and America

Feb 23, 2017 12:00 AM EST | Mark Navarro

China's largest market, The Volkswagen, fell more than 14 percent starting January, which leads to an overall decrease of 4 percent in sales worldwide. It is said that a reduction in tax concessions for a smaller brand of vehicles lead to a decrease in its sales.

According to VWvortex, the Volkswagen brand sales rose in other markets. In the USA, it rose 17% while in South America, a 12 percent increase. Other countries had a sales bump as well, noticeability in Russia, Western Europe, and Eastern Europe.

With China's fall of 14 percent in sales, it brought down the worldwide sales overall despite an increase in other regions. In 2016, Volkswagen sold about 427,200 units in Asia Pacific. 

By 2017, it only sold approximately about 368,000 units having a decrease of 13.9 percent from its previous year. This caused a chain reaction with Volkswagen sales worldwide because last year, Volkswagen had sold about 848,800 units while in 2017; it has only sold 813,700 units.

Furthermore, JustAuto writes that the not only the tax changed turned the global sales down because of the lower sales China, but also the timing of the Chinese new year.  The increase in tax on vehicles with small engines and temporary restraint in planning on the part of Audi dealers had an impact on its sales for January as well.  Fred Kappler, the head of Group Sales of Volkswagen still expects a healthy growth China this year.

Statistics in Europe includes; 7.0 percent boost in sales in Europe selling 312,900 vehicles, 5.8 percent increase in Western Europe selling 262,900 vehicles, 14.6 percent increase in Central and Eastern Europe with 50,000 vehicles.  In January, Volkswagen handed 66,600 vehicles to customers in America, with a growth rate of 9.0 percent.

Although there was an adverse reaction to the sales for Volkswagen in China with a decrease of 14 percent, Volkswagen still expects a growth in sales as the year goes on. There was around 368,000 Volkswagen that was delivered in the Asia-Pacific region and 344,000 of those vehicles were handed to the customers of China.

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