At a briefing of automotive journalists this week the company's Adam Chamberlain said it had been 'good' up to the end of June, but sales in subsequent months had fallen much sharper than had been expected.He suggested that apart from scrappage, concerns about employment, difficult credit, and expected tax rises in the forthcoming budget had all contributed to a lowering of consumer confidence.
The expectation now was of a 2011 out-turn of around 89,000 units, he added. The outlook for 2012 was even lower, perhaps between 75,000-80,000 units, followed by a slight 'bounce' back to 90,000 in 2013.
There are 'positive' indicators for the market, though, he continued. These include the replacement cycle where businesses especially are going to have to change cars, and a pent-up demand for new cars, along with a high personal savings ratio.
Despite the difficult trading environment, Volkswagen in Ireland has grown its market share by 1.6 percent, and now enjoys its highest share ever at 12.3 percent.
VW sales year-to-date to August of this year are 11 percent up on the same period last year.
Toyota, Nissan, Hyundai, Audi and SEAT have also grown share this year.
