+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

One country has kept Volkswagen's global sales from cratering after its emissions scandal

Oct 18, 2016, 00:16 IST

REUTERS/Jason Lee

In the year since the revelation of Volkswagen's catastrophic emissions cheating scandal last September, the German brand's reputation has been left in shambles.

Advertisement

But as its reputation with many consumers lay in tatters, the brand's sales have not only not cratered - it's actually increased.

In the first nine of months of 2015, the VW brand sold 4,349,600 cars around the world.

Over the same period this year, the brand sold 4,374,900 cars worldwide - an increase of 0.6%.

However, these figures are somewhat misleading. That's because VW's sales figures in almost all markets around the world have fallen so far this year. But none of that really matters because Chinese consumers love their Volkswagens.

Advertisement

This is something the powers-that-be at Volkswagen has noticed.

"Thanks to the strong performance in China, deliveries by Volkswagen in September were noticeably higher than the previous year,"Jürgen Stackmann said in a statement. "Consequently, our deliveries for the period from January to September exceeded the 2015 level."

So far this year, VW has sold 2.13 million cars in the Middle Kingdom which represents 48.8% of the brand's total global sales.

Volkswagen

According to VW, much of its 11.4% year-over-year growth can be attributed to the hot sales of its Lavida, Sagitar, Jetta, and Santana sedans. In fact, these represent four of the seven best selling cars in China last month.

VW's strength in the Chinese market can be linked to the company's long standing relationship with the country's car buyers that dates back to the early 1980s with original Santana sedan. Also, Volkswagen and VW Group cars remain popular options as Chinese Government procured runabouts.

Advertisement

In addition, the brand's Chinese offerings are almost exclusively gasoline powered. This means that VW's operations in the country were not really exposed to the 2.o liter, diesel, four-cylinder engine at the heart of the scandal that affected more than 11 million cars worldwide. In fact, only 1,950 cars were affected in China, the Wall Street Journal reported.

According to the Journal, Chinese consumers have purchased a whopping 16.75 million new cars over the first nine months of the year - an increase of 15% over the same period in 2015.

REUTERS/Jason Lee

NOW WATCH: We tried the 'Uber-killer' that just landed a $300 million investment from Volkswagen

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article