VOLKSWAGEN has been booted out of the top-seller’s place after 5 years because the world’s hottest model as the results of the pandemic and hovering prices slashed gross sales in 2020 by 15 per cent – sufficient to raise Toyota to the highest for the primary time since 2015.
The worldwide hunch in car demand brought on by the pandemic hit the Volkswagen Group tougher than most of its rivals, with gross sales down 15 per cent to 9.31 million deliveries throughout all Group belongings (Volkswagen, Audi, Porsche, Skoda, Seat, Scania and MAN).
The extent of the automaker’s gross sales losses was largely decided by their degree of publicity to the areas most disrupted by the virus.
The European Car Producers Affiliation (ACEA) reported that Volkswagen has a robust footprint within the European Union the place passenger automotive gross sales plunged by 24 per cent to lower than 10 million in 2020.
ACEA stated that Toyota has a much bigger presence within the US, the place whole gentle car gross sales fell 14.4 per cent in 2020.
“Though the US has essentially the most COVID-19 deaths and instances, there haven’t been the identical lockdowns as in Europe,” it stated in a press release.
The lockdowns instantly affected gross sales by stopping folks to go to automotive showrooms.
In consequence, Toyota’s 2020 group gross sales – together with Lexus, Daihatsu and Hino – fell 11 per cent to 9.53 million models.
Automotive Information reported that Volkswagen started to vary its emphasis on gross sales to elevating profitability in 2018.
It stated Volkswagen’s return on gross sales was behind that of Toyota and when the pandemic hit in March 2020, it uncovered the Group’s comparatively excessive manufacturing prices.
Now international analyst IHS Markit stated with Toyota again on prime, it might be indicative of a long-term pattern.
It forecasts that Volkswagen will outsell Toyota this calendar yr, however Toyota will carry the crown annually by to at the least 2025.
IHS Markit additionally stated Volkswagen’s plan to construct extra electrified autos – lead by the ID. collection of full EVs – ought to result in a gross sales spike this yr, nevertheless ongoing lockdowns in Europe (main market) will hit showrooms and should have an effect on manufacturing.
Toyota, in the meantime, is anticipated to have gross sales development in Japan, the US and China.
IHS Markit predicts that apart from unfavourable elements together with lockdowns and the worldwide scarcity of digital chips by 2021, it sees international car gross sales in 2021 to develop to 84.4 million, up from 76.8 million in 2020.
It can rise additional to its estimate of 94.5 million in 2025.
