The brand had reported a drop in sales in 2022 to 4.56 million cars, continuing a downward trend underway since the pandemic, after the war in Ukraine and ongoing chip shortages stymied supply chains.

2023 sales improved by 6.7%, the carmaker said, indicating a recovery in supply chains from the previous year and solid demand.

Fully-electric vehicle sales, which Volkswagen has warned have not developed as expected in the past year, were up by 21.1% to 394,000.

(Reporting by Victoria Waldersee, Paolo Laudani, Editing by Rachel More and Miranda Murray)