Volkswagen Middle East said first quarter sales increased 72 percent as demand for its new Jetta and Tiguan cars grew. Europe's second largest car maker sold 2,894 cars in the Middle East in the first three months of the year. “Naturally, instability in various markets - Syria for example - has meant that there is progress to be made in some regions, but overall I'm pleased to say that Volkswagen continues to make strong progress in the Middle East,” Marcus Butros, sales director at Volkswagen Middle East said in a statement. The group, whose brands include VW, Audi, Skoda, SEAT and Bentley, said sales for its Jetta and Tiguan models increased 650 percent and 207 percent, respectively. The CC reported a 202 percent rise in demand. Volkswagen last month reported an 86 percent increase in first quarter net profit to US$4.2b, beating analysts' expectations. The regional car market was hit hard by the 2008-2009 global financial crisis but is starting to show signs of recovery. Sales of cars and light commercial vehicles in the Gulf are expected to grow 6.6 percent this year to 1.28m vehicles, according to IHS. Automakers are ramping up their investment in the region as sales increase amid rising oil prices and regional governments invest in their economies to seek social stability following the Arab Spring uprisings. Saudi Arabia pledged 66,000 jobs in teaching and health care, as part of $130bn of extra spending while the UAE plans to allocate AED7bn ($1.9bn) of its budget for housing loans for citizens to maintain “social stability”. Volkswagen, Ford and Renault have said they plan to invest in showrooms and offer new vehicles to tap the region's mainstream buyers. Volkswagen said its new Passat will arrive in regional showrooms in the middle of this year. Its Polo Sedan will make its debut in the region later this year, it said.
