Economy

Are drivers finally beginning to trust Volkswagen again?

Car maker gains market share for first time since emissions test scandal

Volkswagen accounted for 24.8 per cent of car sales in Europe in November. Photograph: iStock

Thu Dec 15 2016 - 10:18

Volkswagen gained market share in Europe for the first time since its diesel-emissions test cheating became known in September 2015, a sign that the German manufacturer is regaining consumer trust.

The region’s biggest automaker accounted for 24.8 per cent of car sales in November compared with 24.6 per cent a year earlier, the Brussels-based European Automobile Manufacturers’ Association, or ACEA, said in a statement on Thursday.

Industry-wide European registrations rose 5.6 per cent last month to 1.19 million vehicles, putting the sector on track for its third annual gain.

Volkswagen outperformed with a 6.3 per cent increase across the group’s brands, bringing its expansion in the first 11 months to 2.9 per cent.

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Consumer confidence

Europe's auto sector has been recovering after hitting a two-decade low in 2013, supported by economic growth and improved consumer confidence in countries including Germany and France.

While sales growth this year has slowed as the market shows signs of peaking, demand remains resilient in the face of headwinds caused by Volkswagen’s cheating crisis, Brexit and political uncertainty.

Volkswagen's November gain was propelled by a 6.8 per cent increase at Audi and a 29 per cent surge at the Spanish Seat brand.

The company’s main VW marque rose 0.8 per cent to 139,226 vehicles in November, narrowing its market share to 11.7 per cent from 12.3 percent a year ago, showing that the company still isn’t out of the woods.

While Volkswagen has made progress in recovering from the emissions crisis, several of its brands still face probes and lawsuits across Europe and beyond.

– (Bloomberg)

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