VW makes 40% of Q1 profits from China, to invest 6 bln eur

Shanghai, May 13 (Gasgoo.com) In the first quarter 2010, Volkswagen post pre-tax profits of 703 mln euros ($889 mln), of which 286 mln euros comes from the China market, accounting for 40% of its total pre-tax profits.

According to Volkswagen's financial report, its first-quarter sales revenue rose by 19.4% to 28.6 bln euros, increasing its market share to 11.6% in the global passenger car market.

It is noteworthy that in the China market, Volkswagen's first quarter sales surged by 60% year on year to 457,000 units, gaining 286 mln euros that is three times of the same period last year.

Previously Volkswagen disclosed that it would invest another 1.6 bln euros for construction of the two new factories and other projects in China. Moreover, the Group also announced earlier that it would invest 4.4 bln euros to import models and technology. Overall, Volkswagen will invest 6 bln euros in China in the next three years.

At present, China is Volkswagen's biggest market in the world and China has even exceeded the Group's traditional biggest market-- Germany. Last year, it sold 1.4 mln vehicles in China.