Volkswagen's China profit dips 0.5% in first 3 quarters

Volkswagen Group's operating profit in China slid 0.5 percent year on year to 3.6 billion euros (26.88 billion yuan) in the first nine months of this year, the German auto giant disclosed Thursday.

The profits derive from VW's 50-50 joint venture with SAIC Motor Corp., and its 40-60 partnership with China FAW Group Corp. 

For the first nine months, VW and its Chinese joint ventures delivered 2.85 million vehicles, up nearly 11 percent from a year earlier. But VW lost market share because industry light-vehicle sales rose nearly 15 percent.

VW's lower profits -- which come as unit sales are still rising -- suggest that mass-market brands are under pressure to cut prices to maintain sales.

Last week, General Motors announced that its China profits had declined despite higher deliveries. In the first nine months, GM's China earnings totaled $1.45 billion (9.85 billion yuan), down 2.5 percent from a year earlier.