Overtake of Toyota by Volkswagen in global sales

Volkswagen had been quite determined on exceeding Toyota and had set 2018 as a target to win over the Japanese automaker. However, it managed to fulfill its target before three years ahead of time and emerging victorious as the world’s biggest selling vehicle maker in the period January to June 2015

Volkswagenvw sales from January-June 2015 stood at 5.04 million units while sales of Toyota were almost at par at 5.02 million units experiencing a 1.5% fall in sales as compared to sales in the same period in 2014. Volkswagen success was noted due to increased sales in China which accounts for a third of total sales while markets across Europe also saw some recovery. Targets for 2015 stand over 10.1 million cars which were sold during 2014. Toyota, which sold 10.23 million units in 2014 is slated to fall short of its targets to 10.15 million units during the year.

Volkswagen experienced increased sales to above 6% in domestic market and Western Europe with VW Passat sedan and Porsche Macan compact SUV being in demand. Toyota sales across Europe increased 5.7%. In US, Toyota sales were up 5.6% with Lexus NX and Toyota RAV4 compact SUVs being more in demand while VW, Audi and Porsche brands saw a 2.4% increase in sales.

Japan was not a smooth road for traversing for these two companies. Both the competitors found low demand. Sales for VW dipped by 17% while sales of Toyota were down 8.2% with Mercedes Benz emerging as a top seller for the first time in 16 years.

While both companies engage in tough competition in global markets, it will be interesting to see whether VW India manages to beat Toyota in India. Both automakers account for a small share in the passenger vehicle market in the country while Toyota has a larger market share. The company sells triple number of vehicles in comparison to VW India.

In June 2015, Toyota sold 34,300 units whereas it had sold 31,403 units in June 2014. While Volkswagen sold 11,788 units in June 2015 as against 8,769 units sold in the same month of the previous year. VW India’s market share stands at 1.80% as against Toyota which has a market share of 5.25%. New product making strategies and an abundance of new models scheduled for launch in 2016 will ensure that Toyota can continue its lead over Volkswagen in the country.

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