The Volkswagen group recorded a very slight increase in sales in China between April and June compared to last year.
–German automakers continue to pay the price of the pandemic. Daimler, which owns the Mercedes brand, posted an operating loss of 1.68 billion euros in the second quarter. Volkswagen sales fell 17.5% in June, after plummeting 34% in May and 45% in April. But, for the first time since the start of the crisis, these groups across the Rhine distinguish some positive signals that can make hope for better days: Thursday, Daimler reported a “Better than expected market recovery” and in particular a “Good performance in June”, resulting in a result “Above expectations” financial markets.
For its part, Volkswagen recorded a very slight increase in sales (+ 0.7%) in China between April and June compared to last year. This is not an anecdotal movement: with Western Europe, China is the group’s main market. Above all, this country constitutes a kind of barometer in this crisis: the first to have been affected by the epidemic, it is also the first to have resumed an activity approaching normal. We can therefore assume that this revival of activity heralds a resumption of car sales worldwide. “China gives hope and eventually shows a way out of the crisis”, sums up Frank Schwope, automotive analyst at Nord / LB bank.
The other good news from the Middle Kingdom for Volkswagen is that this restart in sales mainly concerns the group’s high-end brands (Porsche and Audi). This segment “Is recovering much faster than the normal market”, says Stephen Wöllenstein, boss of Volkswagen China. Volkswagen is not the only one to make this observation. BMW also notes in China “An encouraging development” in the second quarter, with a 17% increase in sales. An upturn that does not forget that the automotive sector is facing an unprecedented crisis. “Many manufacturers will not be able to avoid painful cuts”, says EY analyst Peter Fub.
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