Volkswagen AG (ETR: VOW3) lost a large percentage of its market share in Europe in the aftermath of the carmaker’s diesel scandal. Of all new car registrations in Europe, Volkswagen accounted for just 25.2%. The previous year, the company accounted for 26.1% in new car registrations.
In the month of October, Volkswagen sold 0.8% less cars in Europe, which was the first drop for the company in the region since May. Even before its emission scandal became public, the German carmaker was losing its market share to competitors who offer a wide range of SUVs. Volkswagen was able to prevent its market share from shrinking further by offering deep discounts on its vehicles.
Volkswagen is taking steps to get the scandal under control, but estimates that the crisis will cost the company €8.7 billion in damages and repair costs. As a result, shares for the company have dropped 39% since scandal came to light September.
The 10-month market share for the company narrowed 0.4% to reach 25%. The carmaker’s sales growth reached just 6.5%, lagging behind the 8.2% growth seen by the rest of the industry.
Some of the top sellers in the region include Daimler AG (ETR: DAI), BMW AG (ETR: BMW) and Fiat Chrysler Automobiles NV (NYSE: FCAU).