Volkswagen, Audi nosedive in July sales

By Jhoo Dong-chan

German auto brand Volkswagen sold only 425 cars last month, a 76.8 percent sales decline compared to 1,834 cars sold in June. Its sister brand Audi also saw a nosedive in sales to 2,638 cars, down 46.5 percent over the same period, according to data released by the Korea Automobile Importers and Distributors Association (KAIDA).

An industry insider said Volkswagen and Audi’s deteriorating sales performance is expected to continue for a while.

“The Ministry of Environment has revoked certification and banned the sales of 32 types of vehicles from the two automakers,” she said.

“It will probably take a long time to reapply and get approvals from the ministry to sell those models again.”

Led by the German auto brand duo’s decline in sales, the total number of imported cars registered in July was 15,730, a 32.9 percent drop compared to sales in June. It is also a 24 percent decline from the previous year’s figure of 20,707, the data added.

“The government ended a consumption tax cut by the end of June, and some brands suffered a huge loss in sales last month. It was a huge blow for import auto brands’ sales in general,” said a KAIDA official.

Monthly sales of imported vehicles peaked at 24,366 cars last December, and have since turned down to 15,730.

Domestic automakers, however, did not benefit from the decline in the sales of imported auto brands.

Hyundai Motor sold 47,879 cars last month, suffering a 31.6 percent decline compared to its sales in June. It is also a 20.1 percent drop from the previous year’s figure.

Kia Motors also reported a 16.2 percent decline in sales to 44,007 cars last month, also down 8.7 percent year-on-year.

According to the Korea Auto Industries Cooperation Association, domestic automakers sold 121,144 cars in July, a 10 percent decline in sales compared to June.

“Degree of sales decline is not as bad as imported auto brands’. But it is certain that the end of the consumption tax cut did influence sales of domestic automakers,” said a domestic automaker official.