Volkswagen overtakes Toyota as the world’s biggest carmaker

10Feb 2017
The Guardian Reporter
The Guardian
Volkswagen overtakes Toyota as the world’s biggest carmaker

German carmaker Volkswagen (VW) has nudged Toyota Motors from the top spot in global vehicles sales in 2016.

Toyota reported that its global group sales edged up 0.2 per cent from a year earlier to 10.175 million vehicles in 2016, fewer than Volkswagen’s 10.31 million.

The group’s sales outside of Japan fell 0.5 per cent from a year earlier, to 7.94 million, due to decreased exports to North America, the carmaker’s largest market.

Despite an emission cheating scandal, VW said earlier this month that the 10.3 million number of global sales in 2016 was up 3.8 per cent from the previous year.

In 2015, Toyota sold 10.15 million vehicles while Volkswagen was second with 9.93 million and Detroit, Michigan-based GM third with 9.8 million.

Meanwhile, Volkswagen is expanding its commitment in Africa with local production of the Polo Vivo in the Kenyan city of Thika near Nairobi. The project which will be jointly realised with the importer DT Dobie will be Volkswagen’s third production facility in Africa – alongside the South African factory and a local production facility in Nigeria.

It is planned to build up to 5,000 units of the Polo Vivo per year at the plant operated by Kenya Vehicle Manufacturers (KVM) from 2017.

“We are taking the successful Polo Vivo from South Africa to Kenya to leverage the enormous growth potential of the African automobile market and participate in its positive development.

This compact model is the best-selling car in the Sub-Saharan region – so it is the ideal entry model for the promising Kenyan market,” Thomas Schäfer commented at the signing ceremony. “With this move, we are strengthening the brand’s overall position in Africa and taking an important step towards expanding our commitment in the region,” Schäfer continued.

President Kenyatta said: “The investment by the Volkswagen Group in Kenya is a key milestone in my administration’s determined push to grow the manufacturing base and industrialised the nation.”

In addition to production of the Polo Vivo from the end of 2016 it is also planned to establish a local training centre to qualify production workers and provide further training.

The centre will initially focus on the needs of the Volkswagen production team. Later on it is planned to provide basic training for young people to learn general industrial skills, thereby increasing employment opportunities in the region in general.

Kenya is one of Africa’s emerging markets. The country plays a prominent role among East African nations and with a GDP of some US$ 63 billion, it is one of the strongest economies in the East African Community (EAC).

Kenya is also an important transit country for trade throughout East Africa. The good economic relations between Kenya and Germany also benefit from ongoing strategic political support.

A long tradition links Volkswagen and Kenya: back in the 1960s, Volkswagen assembled the Beetle in Kenya. The brand is now returning to the country, initially with the Polo Vivo. It is also planned to review local production of further Volkswagen models should the new vehicle market show positive development.

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