Volkswagen increases Q1 sales despite weaker China business

Volkswagen (VOWG_p.DE) significantly increased deliveries in the first quarter despite weaker business in China, its most important single market, the German carmaker said on Friday.

The group delivered 2.04 million vehicles to customers worldwide, up 7.5% compared with the same quarter last year, while in China, sales fell 14.5% to 644,500 vehicles.

Sales in Western Europe provided a boost to overall figures, up slightly more than a quarter as production no longer feels the effects of semiconductor shortages as strongly.

Volkswagen reported a 25.4% decrease in battery-electric vehicles (BEVs) in China in the first quarter, to 21,500 vehicles, while worldwide deliveries were up 42.1%.

Volkswagen and other foreign carmakers are struggling to keep up with Chinese automakers, who are stepping up the pace and pressure to cut costs in a market where electric-drive cars now make up almost a third of new sales.

This report’s information was first seen on REUTERS; to read more, click this link.