World Sales Boost VW
July 13, 2007
Even while Germans shy away from buying new cars, Volkswagen sales are booming in two key developing markets. Strong sales in Asia and Latin America caused global sales jumping 7.8 percent in the first six months of 2007 to a record 3.09 million cars.
World-wide sales were powered by a 20.9 percent increase in Asia and a 27.7 increase in Latin America, the carmaker reported Thursday.
Based in the northern German city of Wolfsburg, the flagship VW brand had a 7.4 percent increase to 1.8 million cars sold, compared with the first six months of 2006. VW also has Skoda, Audi, Seat, Bentley and Lamborghini brands.
Booming Chinese market
In China, deliveries were up 24.6 percent to 431,000. Volkswagen hopes the launch in China this week of a sedan called the Magotan will further increase its presence there. The Magotan is a joint venture with FAW Group Corp.
Sales in Europe and the United States also increased slightly, up 3.7 percent and 2.8 percent perspectively.
Carmakers have been struggling in Germany since a sales tax increase was introduced in January. Horst Schneider, an analyst at WestLB in Düsseldorf, told Bloomberg News he doesn't expect domestic sales to pick up until next year. VW reported its sales fell 3.7 percent domestically in the first six months of the year.
Yet Eastern European markets are showing strong growth potential.
"It's a very mixed picture in Europe," Schneider said.