Volkswagen's Overall Group Sales Return to Growth in January

Demand in China helped the Volkswagen (VW) group's sales return to growth in January, despite the ramifications that the German carmaker is facing for cheating on US diesel emissions tests. In fact, the Volkswagen group posted its best month ever in terms of sales in China. Deliveries at the 12-brand group, including luxury division Audi and sportscar manufacturer Porsche, climbed 3.7 per cent to 847,800 in January, Volkswagen said.

In December, sales had dropped 5.2 per cent, contributing to the first decline in full-year sales since 2002.

Volkswagen sales growth turned negative for the first time in at least 4 and a half years in April 2015, raising pressure on the carmaker to fix trouble spots laid bare by the shock ousting of long-time Chairman Ferdinand Piech. The situation worsened after VW admitted in September it had rigged US diesel emissions tests and up to around 11 million vehicles worldwide could have illegal software installed.

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January group deliveries in China were up 15.4 per cent, and sales in Europe were up 1.8 per cent. In all other regions, deliveries fell, with the biggest declines seen in Russia and Brazil, at 29.5 per cent and 38.8 per cent, respectively.

Deliveries of VW-branded vehicles were up 2.8 percent at 521,400 around the world, driven by a 15.4 percent jump in China.

Earlier this month, Volkswagen postponed publication of its 2015 financial results and delayed its annual shareholders' meeting while it struggles to put an exact price on the emissions scandal.