The FINANCIAL -- Volkswagen Group China on April 17 announced sales results for the first three months of 2017: together with its two Chinese Joint Ventures, SAIC VOLKSWAGEN and FAW- Volkswagen, the Group delivered 891,500 (955,500, -6.7 percent) vehicles to customers in the Chinese mainland and Hong Kong, including 41,400 imported vehicles.
“After a record year in 2016, deliveries in the Chinese market have been affected by a number of factors, in particular the increase in tax on vehicles with small engines and the ramp-up phase of our major SUV offensive. However, with 30 new models to be launched this year and our offensive underway in SUVs – the fastest growing segment – we expect our annual sales to increase in line with overall market growth of around 4-5 percent,” said Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft as well as President and CEO of Volkswagen Group China.
“Volkswagen Group China will continue to actively pursue its goal of delivering exciting, high- quality and safe products that meet the needs of our Chinese customers. At the same time, we will continue to implement our NEV strategy and seek new partnerships as we transform to a provider of people-oriented mobility solutions.”
After a challenging January, Volkswagen brand deliveries regained upward momentum during the remainder of the first quarter, and the brand delivered 695,600 (722,800; -3.8 percent) vehicles in the Chinese mainland and Hong Kong. The introduction of the new Tiguan L boosted Tiguan sales by 25 percent in the first quarter. With the Teramont, Volkswagen brand added a promising, full- size SUV to its line-up, according to Volkswagen Group.
Audi brand’s deliveries for the first three months of 2017 in the Chinese mainland and Hong Kong totaled 108,700 (139,500; -22.1 percent). Temporary extraordinary effects had a major impact on the sales balance for the first quarter. In its largest sales market, Audi is currently preparing with its local partners for the planned next stage of growth. Additionally, the premium manufacturer is also planning to cover additional market potential through a second joint venture with SAIC. With regard to these structural foundations, Audi and FAW are currently engaged in very constructive talks with their dealership partners to further develop activities in China profitably and sustainably for all partners.
ŠKODA brand delivered 66,800 (75,400; -11.4 percent) vehicles for the January to March period, including 21,800 in March. With the brand’s product offensive, including the new KODIAQ in the SUV segment, ŠKODA expects that demand will stabilize in the second quarter.
Among the luxury brands, Porsche brand had a good first quarter with deliveries of 18,100 (16,400), up 10.5 percent year on year for the quarter.