However, given the VW brand’s much greater dealer presence and market share in the UK, it’s a reasonable assumption that Up! and Citigo sales combined will soon be challenging for sector leadership. The SEAT variant will also play a part. But with the Spanish-headquartered brand now starting to drift further behind Skoda in the UK – once they were neck and neck but SEAT’s 36,000 sales last year were nearly 10,000 fewer than Skoda’s – the contribution is unlikely to be large.
Hazelwood dismisses any notion that the Citigo, Up! and Mii will find themselves tripping over each other in the marketplace. “We have about eight dealers with both the Skoda and the SEAT franchise – in separate but adjoining showrooms – and they don’t see any likely crossover. SEAT is seen very much as a sporting brand.”
Hazelwood insists, too, that there is no VW group cross-brand pricing strategy to help keep the Citigo, Up! and Mii apart. A quick scan of list prices and options suggests that this is not quite the case, however, with the VW Up! starting at just over £300 more than the Citigo and options reflecting the VW’s stronger image and style.
But with fuel prices believed unlikely to drop back significantly, Hazelwood argues that the 60mpg-plus on offer from the “city” car sector will continue to ensure its growth, particularly where business mileage is concerned.
In BCM’s view that is almost certainly right. How much that growth might end up being driven by business users with business car finance, however, is rather more open to question.