Volkswagen sees strong growth of cars delivery in China

German carmaker Volkswagen recorded an unexpectedly strong growth in its deliveries of electric and combustion engine cars in China in the first quarter, against a sharp drop for electric vehicles in Europe, reported Financial Times.

The deliveries in China increased almost 8 percent to 694,000 units year-on-year, with EV deliveries up 91 percent from a low base, thanks to the automaker's price cuts, said the London-based daily.

"Volkswagen Group China's e-offensive is taking effect," the report quoted Volkswagen China head Ralf Brandstatter as saying. "In a market that continues to be characterised by an ongoing price war, we are able to record strong growth, especially with our pure battery vehicles."

Analysts said Volkswagen had slashed prices to retain market share in China amid fierce competition between legacy carmakers and newer rivals such as BYD and Tesla.

Despite ongoing high price discounts, particularly from local Chinese original equipment manufacturers, Volkswagen deems its pricing model in the country as "sustainable," according to the report.