Beijing - Volkswagen AG, Europe's largest carmaker, on Friday reported record sales of just over one million vehicles in China last year, but the group still missed its annual sales target.

The German auto giant said it sold 1,024,008 vehicles in 2008, up 12.5 per cent from 2007, amid estimated vehicle sales growth of about 8 per cent in China.

"Throughout 2008 we have continuously improved our results," Winfried Vahland, president of Volkswagen Group China, said in a statement.

"Despite the negative development of the market in the second half of the year, we achieved the best result in the history of Volkswagen in China," Vahland said.

"With our unique participation in the Beijing 2008 Olympic Games, we strengthened the Volkswagen, Audi and Skoda brand images in China," he said.

Volkswagen had set a target of 15-per-cent to 20-per-cent growth in sales, but local factors and the impact of the global financial crisis curbed growth towards the end of the year.

China's vehicle sales fell 15 per cent year-on-year in November, but growth for the first 11 months of 2008 reached 8.5 per cent, the government said.

Rival auto firm General Motors said it sold 1,094,000 vehicles in China last year, up 6 per cent but the slowest growth rate for six years.

Volkswagen's sales includes vehicles marketed by its two joint ventures Shanghai Volkswagen and FAW-Volkswagen in mainland China, Hong Kong and Macau.

The group sold 844,491 Volkswagen-brand models, up 8.2 per cent, and 119,598 Audi vehicles, up 17.3 per cent.

Vahland said it aimed to maintain its sales level in 2009 but did not give any specific target

"We are uncertain of the development of the total market in 2009, but we are confident that thanks to our solid foundation, Volkswagen Group China will outperform the total market in China," he said.

Volkswagen sales in China grew by 28 per cent to reach 910,491 vehicles in 2007. (dpa)