According to Automotive News Europe KALUGA, Russia (Reuters) – Germany’s car market will fall sharply next year after a boost from the government’s car scrappage scheme ends, Detlef Wittig, Volkswagen AG’s, sales chief, said on Tuesday.
Wittig said he expected Germany’s car sales to fall below 3 million units in 2010 from 3.7 million this year.
New-car sales in Germany rose 26.1 percent to just under 3 million in the first nine months compared with the year before, helped by a government-backed incentive offering owners 2,500 euros to trade in old cars for newer models. The scheme was launched in February and ended in September.
Wittig said VW is very positive about its sales in the third and added that VW needs to digest its deal with Porsche before considering other acquisitions. “We will be stable this year in terms of unit sales. This is better than what we have expected. Third quarter was very good,” he said.
Russia optimism
VW CEO Martin Winterkorn said the Russian car market will rise as much as 30 percent by 2018 from its peak 2008 levels.
Russian car sales have halved this year because of the financial crisis.
Winterkorn said he saw some 3.6 million cars selling in Russia annually by 2018.
Both executives were speaking at a ceremony to mark the start of full production at VW’s new plant in Kaluga, 174 km southwest of Moscow.
Under the first stage of the project, the plant has already produced over 100,000 vehicles from the Volkswagen and Skoda brands for the Russian market since it began assembling semi-knockdown kits in November 2007.
Staring next year, full annual production will be 150,000 vehicles