The decline in profits were recorded after a 17.2 percent decline in unit sales was witnessed by Volkswagen. The automaker is planning India centric models to boost volumes.
According to the latest filings with the registrar of companies, the Volkswagen Group in India saw a decline in net profit of 53 percent at Rs. 29.5 crores on account of low sales. The German automaker which sells a range of brands including Volkswagen, Audi, Skoda, Porsche and Lamborghini saw its sales down to 8.2 percent at Rs. 8062 crores as the company sold only 62,363 units throughout the year, down by 17.2 percent. The company’s sales have been plummeting since 2013.
Volkswagen’s sales have dropped drastically for the second time consecutively after selling 80,000 units in 2012. The decline in sales saw the automaker’s market share drop by 2.1 percent at the end of 2013, from a little over 3 percent seen in 2012. The decline in demand also saw Volkswagen shift its focus towards exports and the company commenced exports of the Vento sedan to Mexico last year, while exports of the Polo to Mexico started this November.
While Volkswagen’s overall sales have been declining, the company’s individual brands have posted good numbers. Audi India sold over 10,000 cars last year and plans to cross the 11,000 units mark this year. The number has grown by around 40 percent, compared to the 6547 units sold in FY2012. Sales of Porsche have also increased in the country since 2012. The Vento continues to be the company’s most sold model in the past two years, while the German automaker will also launch new India centric models by late 2015 and 2016 that will help reinstate sales volumes.
Source – Financial Express