(Yicai Global) March 18 -- Amid an overall decline, German auto giant Volkswagen is forecasting 4 percent growth in its overall sales revenue this year.

China contributed 40 percent of new car deliveries and nearly 30 percent of VW's operating profit, helping it achieve growth in both revenue and profit. The firm's management predicts the Covid-19 pandemic will pare about 3 percent from its China sales this year.

Wolfsburg-based VW continued to rank first among global carmakers with a total sales volume of almost 11 million units last year in a 1.3 percent rise over the year before, according to the financial data the firm released yesterday. Its sales revenue gained 7.1 percent to EUR252.6 billion (USD278.9 billion) and its profit jumped 21.8 percent to EUR17 billion last year.

Its shares [XETR:VOW] rose 2.5 percent to EUR110.90 (USD122.17) yesterday. 

The group sold 4.23 million vehicles in China in 2019, up a modest 0.6 percent, but its market share rose from 18.4 percent to 19.8 percent, said Frank Witter, the firm's chief financial officer. The company's China joint ventures' profit of EUR4.4 billion was about the same as in the previous fiscal year, he noted.

VW's prospects are quite favorable, and its sales decline this year will be checked at about 3 percent, said Herbert Diess, its chief executive, addressing the severe impact of the coronavirus pandemic on China's auto market. The China Passenger Car Association earlier adjusted its forecast for car sales this year from a 1 percent increase to an 8 percent drop.

The firm will introduce 15 electric vehicles and 18 plug-in hybrids this year and next. It will fully ensure its battery supply and new vehicle deliveries, while strengthenIng its smart connectivity and software development capabilities, it said.

Editors: Dou Shicong, Ben Armour