While other automakers were reporting gains in a strong market for new vehicles in November, Volkswagen said Tuesday the impact of a widening emissions scandal caused its sales to plunge almost 25 percent during the month.
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Volkswagen sold fewer than 24,000 cars in the month of November, posting a drop of 24.7 percent, which is 7,843 fewer cars than the November 2014 sales figures of 31,725 vehicle sales.
The emissions scandal, which saw Volkswagen recalling up to 11 million diesel vehicles worldwide, broke out in the USA on September 18, where it was reported that the company violated norms by fitting a cheating software to pass the emissions tests in the country.
“It is widely accepted that cars will emit more in real-world conditions than in a lab. The government has determined this higher emission is tantamount to a gross violation of the BS-IV standards in India”, the official added. In September, the U.S. Environmental Protection Agency found the company guilty of installing illegal software in its diesel engines. The owners of the affected vehicles will be informed by the respective brands of the Volkswagen Group after the solutions are approved by the authorities.
After California and South Korea, Volkswagen has been asked recall 323,700 diesel cars in India which exceeded local pollution limits.
Volkswagen has been suffering a global backlash after admitting it rigged software to cheat diesel vehicle emission tests.
Early last month, ARAI found substantial discrepancies between on-road and laboratory emission levels on some Volkswagen group diesel cars and issued a notice seeking technical explanation from the German carmaker. Of course, these sales, while representing a notable rise, are still well under those of the best selling Volkswagen models – so I guess the scandal hasn’t altered consumer habits as much as might have been hoped.
Combined, VW and Audi US sales fell 16 per cent from a year ago, a steeper drop than the average analyst estimate for a 5.9 per cent decline.
Porsche and Audi, together with the Bentley super-luxury brand, accounted for just 16% of the VW group’s total vehicle sales previous year – but they brought in over 60% of the group’s operating profits.
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VW also announced on Tuesday that it was recalling 324,000 cars in India to remove devices linked to emissions cheating.
