European Car Sales Grew 9.2% in 2015, but Volkswagen Lost The Market
By Staff Writer
Jan 15, 2016 05:16 PM EST
Jan 15, 2016 05:16 PM EST
European car gains a strong rise of 9.2% in 2015. The strongest demand was recorded in December, but Volkswagen market showed a decline.
According to Reuters, higher demand in German brand and Jeep sport utility vehicles lifted the European car sales in 2015. However overall sales volume is still below the sales before crisis. This is based on the data released by Association of European Automobile Manufacturer (ACEA) on Friday, January 15.
This result is only now passing levels registered in 2010, immediately after the economic crisis," the association said in a statement. "In other words, the trend is positive but, in absolute terms, volumes remain low."
Nevertheles, European car sales for 2015 reached the highest volume in six year at 14.2 million vehicles
Two German carmakers Daimler and BMW drove the growth, as Daimler rose 17.7% and BMW with 12.3% increase. The demand was high due to their popular Smart and MINI brands. French carmakers, Renault and PSA Peugeot Citroen grow 9.4% and 6%, respectively.
Although its sales upped 6.2% but Volkswagen lost 0.7% of its market to 24.8% following its diesel emissions test-rigging scandal. The scandal in September has declined the sales significantly and drew criticism from autmotive industries, environmentalists and politicians, including German chancellor Angela Merkel.
Association of European Automobile Manufacturer, abbreviated by its French name: Association des Constructeurs Européens d'Automobiles or ACEA, is the group of 15 Europe-based manufacturers of car, van, truck and bus. The association was founded in 1991 consist of automakers that has its operation in Europe, includeing Toyota and Ford along with traditional European carmakers like Mercedes Benz, BMW, Renault, Fiat, Scania, Volvo and others.
The ACEA report showed that Volkswagen lost its market to many competitors including Daimler, Renault and Ford Motor. Throughout 2015, the strongest sales in European Union occurred in December. According to Wall Street Journal, the 16.6% surge in December is the strongest monthly rate in the entire year.
In order to regain its reputation, Volkswagen applied a proposal in December with two optional plans: reprograming its vehicles' software or install a component to meet the standards. Bloomberg reported that regulators in the U.S. and EU rejected the term in the proposal this week.
A strong gain in December showed that a popular car still has a good demand in the market. While the sales were still below the volume before the 2010 crisis, but sales in 2015 recorded the six-year high. As for Volkswagen, the company still has to work its way to go back on track.
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