Volkswagen (VLKAY) continues to feel the effects of the emissions scandal some 10 months after the cover up first came to light, May European Union car registration figures show.
New passenger car registration figures for Volkswagen-branded vehicles 4.1% from a year earlier, according to the latest figures from the European Automobile Manufacturers Association, or ACEA. That's the smallest gain for any major brand.
Volkswagen was still the best-selling vehicle, with 143,303 units sold during the month, but its percentage share of the market was down significantly, dropping to 11.1% from 12.4% a year ago.
Last September, the United States Environmental Protection Agency found that many VW cars had been fitted with software designed to help them cheat emissions tests. The Wolfsburg, Germany-based company eventually admitted that as many as 11 million of its vehicles worldwide, including eight million in Europe, had been fitted with the software. The company set aside EUR6.7 billion ($7.5 billion) to cover the costs of recalling the cars, which resulted in the company posting its first quarterly loss in 15 years in the third quarter of last year.
Volkswagen shares were recently down 0.96% in Frankfurt. Shares in the carmaker are down more than 40% on the year.
Other European car makers notched up impressive gains during the month. New registrations of the Renault (RNLSY) brand increased 35.5%, with 100,698 units sold, making the French car maker the second best-selling brand. Its share of the market rose to 7.8%, from 6.7% a year earlier.
Renault shares were down 0.55% down in Paris.
General Motors-owned (GM) - Get Report Vauxhall saw a 12.6% increase, shifting 86,588 units during the month. Its percentage share of the market dipped slightly, however, to 6.7% from 6.9% a year earlier.
Overall, the passenger car market saw strong growth for the 33rd consecutive month. Registrations grew by 16% compared to May 2015, reaching 1,288,200 units.
In volume terms, these results come close to May 2008, just before the economic crisis hit the auto industry. Among major markets, Italy (+27.3%), France (+22.3%), Spain (+20.9%) and Germany (+11.9%) all recorded strong performances with double-digit percentage gains. The U.K. market also grew (+2.5%) last month, although at a more modest rate.