The German automaker retained its status as China's best-selling brand.

In August, Audi sales jumped 26 percent year-on-year to 27,858 units, as VW took steps to squeeze more luxury car production out of its Chinese assembly plants.

VW's third volume brand in China, Skoda, has not yet announced August sales.

Volkswagen is targeting group sales of 2 million units in 2011, up from 1.9 million units last year.

China, which is Volkswagen's largest global market, will play a big role in the automaker's plans for growth.

In an interview with Automotive News Europe, VW group CEO Martin Winterkorn noted that the automaker is constructing two new assembly plants in China and may build more.

"In China, we just expanded our Chengdu factory and approved the financing for two more factories, in Foshan and Yizheng, by 2013," Winterkorn said. "If that market keeps growing the way it has, even more facilities are conceivable."

Winterkorn added that Volkswagen expects China's industry sales will grow more than 50 percent to 28 million units by 2018.

The German automaker has two joint ventures in China with Shanghai Automotive Industry Corp. and China FAW Group Corp.