VW Group Q1 deliveries slump

Sales at Volkswagen Group, the largest carmaker in China, plunged 24 percent to around 754,000 in the first quarter. 

The decline is a result of the extended global semiconductor chip crunch and impaired supply chains amid spiking coronavirus infections across China, the Germany auto giant said this week. 

First-quarter sales at VW brand slipped 24 percent to 557,900 while Skoda volume plunged 42 percent to 15,200. Audi deliveries dropped 22 percent to 161,600 while Porsche sales fell 20 percent to 17,700. 

VW Group didn’t disclose sales at its other brands in the Chinese market during the period. 

In contrast to the sharp decline in overall sales, the German group recorded robust demand for electrified vehicles. 

First-quarter sales of new energy vehicles -- full electric vehicles and plug-in hybrids – surged 67 percent to 38,700. The tally includes 27,100 ID models. 

With Shanghai and the northeast China city of Changchun under lockdowns in March amid spiking coronavirus cases, VW Group had to shut down key assembly plants in the two cities. 

In addition to Shanghai and Changchun, dozens of other Chinese cities have adopted full or partial lockdowns to contain virus outbreaks last month. Operations at VW Group dealerships have also been severely affected.

“As a result of recent lockdowns, around 20% of the Group’s dealers have been forced to temporarily close in March alone, and more are affected by reduced personnel and individual quarantine obligations,” VW Group’s China unit said.