It remains Volkswagen of South Africa’s (VWSA’s) aim to be “total market leader in the medium term”, emulating the ambition of its German parent company, says VWSA sales and marketing director Mike Glendinning.
However, he notes that Volkswagen’s representation in the light commercial market remains problematic to the company, as this is where market leader Toyota South Africa keeps on outpacing its German rival, especially with its Hilux bakkie.
Volkswagen is South Africa’s top-selling passenger car brand, though, adds Glendinning, with the brand boasting a 18.7% share of the passenger car market in 2012. The brand’s highest ever share was 20% in 1995, when the Golf Chico made its local debut in the entry-level market.
At group level, Volkswagen and Audi achieved a 22.5% share of the passenger car market in 2012, with Hyundai and Kia second at 16.8%, and Toyota and Lexus at 15.2%, says Glendinning.
VWSA MD David Powels says it will be “unrealistic” for Volkswagen to target market leadership in the short term in South Africa, especially as one-third of new vehicle sales comprises commercial vehicles.
“We need to improve our participation in the commercial vehicle segment. We are latecomers here, so we need to build a base from where we can grow.”
Volkswagen’s Amarok one-ton bakkie only made its local debut in 2010.
“We have the Amarok and, over time, we need to improve its penetration. We can also look at other commercial vehicle segments for growth,” notes Powels.
Amarok sales continue to hover at around 300 to 500 units a month, compared with the Hilux’s numbers of between 2200 and 3 000 units a month.
VWSA’s other commercial vehicle competitors are the T5 minibus, Crafter van and Caddy small van.
“If Volkswagen wants to be number one, we need to expand our global commercial vehicle range,” says Powels, “and we in South Africa can benefit from this expansion.”
On the nature and type of commercial vehicles Volkswagen has up its sleeve, he remains mum. He does note, however, that VWSA has not given up on introducing a half-ton pick-up in the local market in the “medium to long term”.
Powels says Volkswagen hopes to become number one in the world on a “sustainable basis”.
“We have patience and we are realistic. We’ll build it up step by step.”
He adds that VWSA acknowledges “the tremendous presence” of competing brands in the local light commercial vehicle market.
Volkswagen sold 9.07-million vehicles last year, up 11.2% on 2011 numbers. It is the first time the company broke through the 9-million mark.
South Africa is Volkwagen’s 11th largest market in the worldand boasts the fourth highest country market share in the group.
Toyota was recognised as the world’s best-selling vehicle brand in 2012, after recording nearly 9.75-million unit sales.
Toyota South Africa last year secured the number one spot in the local market for the 33rd consecutive year.