Volkswagen China sales remain steady, despite import tax changes

Volkswagen Group China sold a total of 1.99 million vehicles in China's mainland and Hong Kong in the first six months, up 9.2 percent year on year, according to a statement published by Volkswagen on its official website on Wednesday.

“The performance for the first half of 2018 is very positive with nearly double-digit growth, which provides us with a confident outlook for the rest of the year,” said Jochem Heizmann, president and chief executive officer of Volkswagen Group China.

Heizmann added that sales growth is driven by the company's strong sport-utility vehicle offensive and the robust performance of sedan models.

China's auto sales climbed 5.6 percent from a year ago to 14.06 million vehicles in the first half of this year, according to data from the China Association of Automobile Manufacturers. Sales figures for Volkswagen Group China in the first half outpaced overall market growth.

The German automaker also said lower import tariffs on cars and auto parts, which came into effect on July 1, impacted sales in the overall market in June and July, as some consumers postponed their purchasing decisions. But the company said this did not affect their performance and Volkswagen Group's car sales remained consistently strong.

In terms of brand, Volkswagen passenger cars remained the top choice for Chinese car buyers during the first six months of this year. A total of 1,483,200 Volkswagen branded vehicles were sold in the first half, up 6.3 percent year on year.

Volkswagen's premium brand Audi reported robust sales growth in the first half of this year. Sales of Audi vehicles jumped 20.3 percent from a year ago to 306,600 units, due to substantial growth of the Audi A4L. The automaker said it is the best-selling Audi model so far this year. In June, sales of the Audi A4L rose 29.1 percent to 12,800 vehicles when compared with the same month last year.

Skoda delivered a total of 165,500 vehicles in the first half, an increase of 23.5 percent year on year. Volkswagen's luxury brand Porsche delivered 33,400 vehicles in the first half in China's mainland and Hong Kong.