Volkswagen AG has lost considerable market share in Europe in its first month since the emissions-scandal went public.
Volkswagen AG Loses European Market Share as Emission Scandal Disrupts DemandThe German automaker saw new sales fall from 26.1 percent in October last year down to 25.2 percent this year, according to reports from the European Automobile Manufacturers’ Association.
Last month, the car manufacture sold up to 0.8 percent fewer cars in the European market, the first drop in this market since May, causing slower than usual sales in the market.
Even before the emissions scandal, Volkswagen was markedly losing sales to competitors who offered a diverse range of sports cars. Deeper discounts allowed VW to maintain its market share.
Juergen Pieper an analyst with Bankhaus Metzler in Frankfurt said, “VW sales have been generally weak throughout the year.”
He added, “The added impact from the diesel scandal has been fairly minimal.”
Volkswagen estimates that the crisis will result into $9.3 billion in costs of repairs and the damages caused by fake carbon-dioxide labels.
In an attempt to regain its reputation against the background of falling shares, VW is offering customers discounts of up to 11.2 percent, adding up to an industry-wide discount of 12.2 percent, up from 11.8 percent last year.
Booming business for BMW and Daimler
As VW shares tumble in Europe, other carmakers are seeing booming business, with sales rising 2.7 percent or an equivalent of 1.14 million new cars being bought even though this was lower than the 9.8 increase witnessed in September.
Daimler AG witnessed the biggest growth, with sales jumping to 21 percent fuelled by demand for the Smart city-car. Meanwhile luxury carmaker BMW AG recorded a 13 percent increase while Fiat Chrysler reported a 7.7 increase propelled by demand for the Jeep brand.
VW’s market share over ten months declined 0.4 percent down to 25 percent. The company recorded a 6.5 percent sales growth; lower than the industry wide 8.2 percent growth rate.