After trailing General Motors Co. in China for eight years, Volkswagen AG edged ahead in the third quarter, putting it one step closer to its goal of becoming the world’s biggest automaker.
VW’s deliveries in the country jumped 21 percent last quarter, almost triple GM’s growth, to 704,991 vehicles, according to figures the company reported.That beat the 664,765 that GM reported earlier this month.
At stake is supremacy in the world’s biggest auto market, which analysts say will likely exceed those of the U.S., Japan and Germany combined three years from now. China is the biggest market for both companies.
“Being No. 1 in China means a lot to their global development,” said Harry Chen, an analyst with Guotai Junan Securities Co. in Shenzhen. “Volkswagen and GM will go through a period of time fighting at close quarters in China and they may take turns grabbing the lead.”
The Volkswagen Tiguan
Though the comparisons aren’t perfect ― VW counts Hong Kong and Macau and excludes trucks, while GM does the opposite ― the U.S. company confirmed that it had ceded the top spot for the quarter. Volkswagen declined to comment.
With only one quarter left, GM’s lead of about 77,000 units may be enough for the company to hang on to the annual China sales crown.
The Buick Excelle and Chevrolet Sail were the top two selling cars in China for the first nine months, while VW’s top seller, the Jetta, ranked fourth, according to the China Association of Automobile Manufacturers. VW had five of the 10 best-selling cars through September, while GM claimed three spots, according to CAAM.
Japanese backlash
Volkswagen introduced new versions of its Lavida and Audi A4L sedans in the third quarter, and benefited from a territorial dispute that fueled so much anti-Japan sentiment that Toyota Motor Corp. and Nissan Motor Co. saw their September sales in China tumble the most since at least 2008.
Most GM sedans were introduced two to three years ago and are reaching the end of their product life cycles, making them less attractive to car buyers, according to researcher LMC Automotive.
With more refreshed models in showrooms just as Chinese buyers have turned away from Japanese brands, Volkswagen has been better able to capitalize on the tensions than GM, said Steve Man, a Nomura Holdings Inc. analyst. Volkswagen is also expanding production capacity faster ― 38 percent growth this year versus GM’s 26 percent, JPMorgan Chase & Co. estimates.
Volkswagen isn’t alone in gaining on GM. South Korea’s Hyundai Motor Co. and affiliate Kia Motors Corp. saw their combined sales rise 9.5 percent to a record in September. Ford Motor Co., whose Focus compact is the No. 3 selling car in China this year, reported sales jumped 35 percent.
(Bloomberg)
