Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Segment analysis
November 03, 2022 01:00 AM

VW, Skoda, Seat supply woes drag down compact car sales

The segment fell one notch to Europe’s fourth-largest, following a 16 percent slide.

Nick Gibbs
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Volkswagen Golf eHybrid during testing

    The VW Golf remained Europe’s top-selling compact despite a 25 percent decrease in sales during the first nine months.

    Compact cars slipped to become Europe’s fourth-largest segment behind compact SUVs in the first nine months of the year after global supply shortages forced the Volkswagen Group to cut production of key models.

    Segment sales stood at 980,864 through September, down 16 percent, according to figures from market researcher Dataforce.

    The VW Golf retained its position as the segment’s best-seller but lost its traditional place as Europe’s most popular model to both the Peugeot 208 and Dacia Sandero small cars after sales dipped 25 percent to 132,989.

    The Golf lost 44,974 sales compared with the year before, while the Leon, from sibling brand Seat, lost 38,395 registrations, the second-worst hit in the segment. The third-most-affected car in the segment was another VW Group model, the Skoda Octavia, which lost 29,097 sales compared with the same period in 2021.

    VW Group’s order bank in Europe is now running at six months, equivalent to 1.9 million cars, Chief Financial Officer Arno Antlitz said during the company’s third-quarter earnings call last week.
     
    The constraints have hit the company’s vehicles in volume segments the hardest as the company prioritizes higher-margin model lines.

    “Not all the channels are fully open,” Antlitz said. “It's pretty clear that in a time where we don't have enough semis [semiconductors] or enough capacity we would concentrate on the more profitable channels." VW Group’s troubles maintaining its supply of mainstream compacts has elevated its rivals, with the Toyota Corolla moving ahead of the Octavia into second place in the sector after nine months despite an 11 percent sales decline for the Japanese model (see chart, below).

    The arrival of the new-generation Peugeot 308 has boosted it to No. 4 from No. 13 in compact sales.

    The new-generation Peugeot 308 increased sales by 52 percent to finish fourth, while the Hyundai Group’s more consistent ability to meet demand amid parts shortages saw four of its models finish in the segment top 10, three from Kia and one from Hyundai.

    The VW Group’s supply problems also affected the ID3 electric hatchback, which suffered a 45 percent sales decline, pushing it out of the top 10.
     
    All three best-selling EVs in the segment lost sales, with new overall leader, the full-electric Kia Niro, falling 10 percent and the Nissan Leaf down 14 percent (see table, below).

    Despite that, EV sales within the segment grew to take a 15 percent share, overtaking hybrids to become the leading electrified drivetrain.

    Electric newcomers such as the Cupra Born, Citroen e-C4 and Renault Megane E-Tech helped increase EV sales in the segment 11 percent to 144.216.

    Also boosting numbers was the addition of the Chinese-built MG5 electric compact wagon, which recorded 9,568 sales, while September saw the first sales of the competitively priced MG4, a rival to the ID3.

    Plug-in hybrids, however, suffered badly, falling 31 percent to 69,888 sales, mainly due to parts shortages within the VW Group.

    The Volkswagen brand announced it had stopped taking orders for plug-in hybrids in March due to shortages stemming from Russia’s war in Ukraine, which halved sales of the Golf GTE.

    “This was a supply issue, not a demand issue. Some specific parts were missing, therefore we were unable to deliver more plug-in hybrids to our customers,” a spokesman for the Volkswagen brand told Automotive News Europe.

    Within the wider VW Group, sales of the plug-in hybrid Skoda Octavia were also affected, dropping 53 percent while production of the plug-in hybrid Seat Leon was halted, resulting in a 97 percent reduction in sales to just 429.

    VW’s problems meant that plug-in hybrids accounted for just 7 percent of compact sales after nine months.

    The Toyota Corolla (shown) has passed the Skoda Octavia to become Europe’s No. 2-selling compact through three quarters.

    Meanwhile, Peugeot still registered 9,933 plug-hybrid versions of the new 308, while the first sales of the new plug-in hybrid Opel/Vauxhall Astra also boosted the count. The Kia XCeed plug-in hybrid topped the table, with 10,823 registrations.

    Hybrids accounted for a 13 percent share of the segment, driven by sales of the Toyota Corolla. Hybrids accounted for 90 percent of Corolla sales.

    Sales of diesels, meanwhile, tumbled 26 percent as more brands dropped versions powered by the fuel. Those models losing diesel options in the last 12 months included the Skoda Scala, Citroen C4, Honda Civic, Kia XCeed and Ceed, Hyundai i30 and Mazda 3. The Skoda Octavia was Europe’s best-selling diesel at 47,064 sales, beating the Golf.

    The station wagon remains a popular compact body style with the Skoda Octavia wagon leading both the segment and European sales overall, despite registrations falling 23 percent. The wagon version accounts for more than three-quarters of Octavia sales, according to Dataforce figures (see chart, below).

    The Touring Sport wagon version of the Corolla is also a big seller, accounting for just under half all Corolla sales in the first nine months. Toyota made the decision to expand production of the Touring Sport at its Corolla plant in Derbyshire, central England, with fleet customers its main purchase target.

    “It’s quite a weapon against the competition,” Andrea Carlucci, director of marketing and product development at Toyota Motor Europe, told Automotive News Europe earlier this year.

    Meanwhile, the Kia Ceed SW was the No. 3-selling wagon in the segment, with a volume of 30,841, accounting for nearly 60 percent of all sales of the model line.

    Ford Focus sales were also boosted by the wagon version, which represents almost half the model’s sales.

    There were signs in September’s figures that the segment might stabilize as supply returns. Skoda overcame recent parts shortages to register 17,730 Octavias in the month, almost triple the same month last year and enough to overtake the Golf for the No. 1 spot.

    With new models such as the Peugeot 308, Opel/Vauxhall Astra, Renault Megane E-Tech and Honda’s hybrid-only Civic joining the mix, the sector could see a rejuvenation in 2023.

    RECOMMENDED FOR YOU
    VW's potential battery IPO attracts high investor interest, top shareholder says
    Recommended for You
    VW Battery production
    VW's potential battery IPO attracts high investor interest, top shareholder says
    cupra-born_01.jpg
    VW's Cupra brand weighs entering U.S. market with larger EVs
    The Ford Mach-E
    Ford expects to lose $3B on EVs this year
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us