HispanicBusiness

Europe's biggest carmaker, Volkswagen, said Friday it had enjoyed a bumper year for sales in 2012 as a surge in demand in the US and China offset a slump in the crisis-hit European auto market.

The German-based group said deliveries of its flagship VW brand jumped by 12.7 per cent last year to hit a record 5.74 million units after they soared alone by 31 per cent in December compared with the same month in 2011.

But releasing its latest sales data, the company warned it faced a difficult new year.

"There has been another strong increase for the Volkswagen passenger car brand even though market conditions were at times difficult," said VW sales chief Christian Klingler.

He added that 2013 "will be a very demanding year, and we will be facing new and difficult challenges. But we are well prepared."

Powering the annual sales performance was a 35-per-cent increase in deliveries to the US compared with 2011. Sales to China were up 25 per cent on the year.

However, VW vehicles in Europe slumped 1.2 per cent after the fiscal austerity and recession gripping the eurozone plunged the European car market into crisis.