The Volkswagen Group has reached the world's top carmaker position in 2016 selling over 10.3 million cars around the globe. Despite the “Dieselgate” scandal the German company, which also includes its Audi, Seat, Skoda and Porsche brands, managed to overtake Toyota which registered a slowdown in its sales growth with a total of 10.2 million vehicles.
Different growth pace makes the difference
The big difference between the two companies was clearly the values of sales growth. While
Toyota just grew 0.2% in 2016,
Volkswagenn managed to increase sales by 3.2%. In third place comes GM with an estimated 9.5 millions cars sold is expected to fall 3.1% compared to 2015.
The biggest problems from
Toyota's sales in 2016 were the US and Chinese market, where growth couldn't follow the remaiming global regions.
“Dieselgate” scandal not slowing down Volkswagen
Although sales grew 4% in Europe in 2016,
Volkswagen still lost market share in its second largest market. In fact in its domestic market, Germany, sales have fallen 7.2%. This is a result of the “Dieselgate” which slammed the German brand popularity. Still with the help of the remaining brands of the Group and the Chinese market the effects were reduced.
With the help of the increasing popularity of
Audi and
Porsche as well as a high-demand in China, it looks like the company is efficiently reducing the negative side effects of the dieselgate. Skoda and Seat also registered positive sales years helping the
Volkswagen Group to climb to the first position as the world's largest automaker.
In the US market the
Volkswagen Group saw its sales fall by 2.6% and in Brazil sales volume dropped 34%. China continues to be the best-selling market of the company, with sales going up 12.2%.
Volkswagen to keep top place in 2017
Economic forecasters are predicting that
Volkswagen will be able to keep the title of world's largest carmaker in 2017. In fact
Toyota's higher dependence on the US market is probably its biggest weakness. And US President Donald Trump withdrawing the country from the Trans-Pacific Partnership trade accord is definitely not good news for
Toyota.
Moreover, the possible renegotiation of the North American Free Trade Agreement involving Mexico, promised by Trump during the campaign, will worsen things even more.
Toyota is planning to open a new plant in Mexico to build the
Corolla has already been criticized by Trump, as the new US President is clearly pressuring car makers to produce more cars on US soil.
So
Toyota is clearly more exposed to the US market than
Volkswagen, which means that if the Chinese and European market continue its growth levels, the German company should be able to be the largest carmaker in the world in 2017.