VW Q1 sales gain 25% as China demand surges

Volkswagen AG, Europe’s largest automaker, reported a 25 percent increase in first-quarter sales, helped by a surge in Chinese demand.

Deliveries at VW’s seven car brands and light-truck division rose to 1.73 million from 1.39 million a year earlier, the Wolfsburg, Germany-based company said in an e-mailed statement today.

"There are clear signs of a revival on the overall passenger car market in many parts of the world," sales chief Christian Klinger said in the statement. "Nevertheless, we still expect this to be a tough year."

VW is targeting a second consecutive year of record sales as it add 60 models, including upgrades, in 2010 alone. The carmaker rolled out nine vehicles at last month’s Geneva auto show, including the Amarok pick-up truck, Sharan minivan and its first hybrid model, a version of the Touareg SUV. Luxury unit Audi also presented the A1 compact.

First-quarter sales in China climbed 61 percent to a record 457,300 vehicles, while U.S. deliveries advanced 37 percent to 80,000 cars and SUVs.

Chief Executive Officer Martin Winterkorn, who has a goal of overtaking Toyota Motor Corp. in deliveries and profitability by 2018, is targeting earnings and sales growth in 2010, with deliveries surpassing last year’s 6.29 million cars and SUVs.

Audi sold 264,100 vehicles, a 26 percent gain, posting its best first-quarter sales ever. The main VW brand rose 27 percent to 1.11 million.