The German auto giant, Volkswagen AG is likely to head past Toyota as the world’s largest car maker in the current fiscal year. The German company which accounted for one third of the total global sales in the year 2010 is likely to rise by 13% to 8.1 million vehicles this year. The report is based on the average of three analysts surveyed by Bloomberg. The other companies like GM is likely to gain about 8% to 7.55 million vehicles while Toyota to drop by 9% to 7.27 million vehicles.
This high volume for Volkswagen is due to its expected growth of 20% in 2011 and more than double in India while for Toyota its bad times since it is suspending its plants in South Asia because of floods. Toyota had also suspended productions due to the massive earthquake that crippled Japan. “Emerging markets are at a stage of car-adoption by consumers and there is still a large space for sales to grow. said Jenny Gu, Shanghai-based senior markets analyst for J.D. Power. ”VW realized this and put a lot of effort on emerging markets.” Also, Marc Tonn, a Hamburg-based analyst with M.M. Warburg commented, “VW is well positioned in key markets and has about the broadest model portfolio among the top competitors,”