VW June sales rise 5.7% on higher demand in China, U.S

Volkswagen AG, Europe’s largest carmaker, said sales increased 5.7 percent in June helped by demand in China and the U.S.

Deliveries advanced at all volume brands including the Audi luxury division and Czech unit Skoda, rising to 644,600 cars and sport-utility vehicles from 609,900 a year earlier, the Wolfsburg, Germany-based company said today in an e-mailed statement. Half-year sales gained 16 percent to 3.58 million.

“We expect to perform better than the overall market this year,” sales chief Christian Klingler said in the statement. “Our innovative and environmentally friendly model range is being well received by customers.”

Volkswagen is targeting a second consecutive year of record deliveries as it adds about 70 models, including upgrades, in 2010. The carmaker said July 15 it will build its 11th plant in China as part of a plan to double production capacity in its biggest market to 3 million vehicles within four years.

China, where Volkswagen is investing 6 billion euros ($7.8 billion), is critical to Chief Executive Officer Martin Winterkorn’s goal of surpassing Toyota Motor Corp., the world’s biggest carmaker, in sales and profitability by 2018. VW’s sales in the world’s biggest auto market surged 46 percent in the first six months to 950,200 vehicles.

Half-year deliveries in the U.S. increased 29 percent to 175,300 units while European sales gained 4.7 percent to 1.74 million vehicles, the company said. Sales in VW’s German home- market declined 15.9 percent.

Volkswagen said on June 16 it expects operating profit and deliveries to increase “significantly” this year. The manufacturer will publish first-half results on July 29.