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The second-generation Volkswagen Beetle will be “phased out” in Australia due to waning sales, CarAdvice reports. This, just after three years since its introduction to the market. The decision however, only applies to Australia, and therefore the Beetle will still be on sale in other markets worldwide.

A sharp decline in sales was one of the main reasons for the decision. In 2013, a total of 799 units of the 21st century Beetle were sold, while in 2015 only 240 units were recorded Down Under. Although sales of the Beetle are up in 2016 (43 units), it is still a small number.

While many praised the new Bug for being better than its predecessor, the “classic remake” theme apparently never caught the attention of customers. In comparison, the Fiat 500 and MINI Hatch managed to obtain better sales figures than the Beetle in Australia.

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In Australia, the Beetle comes in one variant only – a 1.4 litre TSI engine with a six-speed manual or a seven-speed DSG gearbox as an option; the convertible is not available there. It’s not exactly cheap as well as it’s priced between AUD$31,390 (RM97,070) to AUD$33,890 (RM102,635) on-the road. These are but a few reasons that point to the low sales figure.

“The Beetle has become a niche model in Australia, and we plan to phase out the current generation later in the year,” Volkswagen Australia said in a statement. That said, the Beetle will be receiving a “send-off it deserves” in the form of a limited edition model there.

“Of course, the Beetle is such a significant part of our heritage both locally and around the world, which is why we are planning to bid farewell to the current Beetle in Australia with a limited-run special model that will offer some unique equipment and individualised numbering,” the company disclosed.

GALLERY: Volkswagen Beetle Club Edition in Malaysia