Volkswagen India reports second consecutive decline in sales in October

The automaker sold 3,255 units in the month, 30% lower than 4,663 units sold in October 2014. The automaker had reported a 20% fall in sales in September, when the scandal broke out.

By Shourya Harwani

03 Nov 2015

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Before the emission scandal came to light, VW India had reported growth for seven consecutive months starting from February till August.

Scandal-hit automaker Volkswagen Group’s local arm, Volkswagen Passenger Cars India has reported de-growth in sales for the second straight month in October as uncertainty over the fate of Indian cars and product recalls marred the brand.

The automaker sold 3,255 units in the month, 30% lower than 4,663 units sold in October 2014. The automaker had reported a 21% fall in sales in September, when the scandal broke out.

There is no doubt about the Volkswagen brand taking a hit due to the emissions scandal, as numbers tell the story themselves. Before the emission scandal came to light, Volkswagen India had reported growth for seven consecutive months starting from February till August.

In the first eight months of the year, sales had increased by 17% over the same period last year.

Volkswagen India has still not notified whether its diesel cars sold in the country are affected by the emissions cheating scandal and if a recall would happen. The brand has taken a hit with many customers opting for the wait-and-watch approach and despite festive offers and attractive finance schemes, dealers have seen lower footfalls at their showrooms.

While the carmaker’s cumulative sales in the January to October period were higher by 6.5% at 38,633 units, it may take some more time before sales could pick up again for the German automotive giant.

The German carmaker was caught manipulating vehicle emission tests in the United States, following which it admitted that as many as 11 million vehicles across the globe could be affected. It has since announced plans to recall all these vehicles.

Volkswagen India said that evaluation was taking a longer time in India due to a diverse range of brands, model years and powertrains involved. “Since there is a complex combination of several brands, various models, different engine variants and gearboxes as well as different model years that need to be analysed, establishing detailed facts is taking a longer time,” the automaker had recently said in a statement.

Volkswagen’s India arm was put under the scanner after the Indian government directed ARAI to ascertain whether the company had rigged emission tests in the country.