BEIJING (dpa-AFX): Volkswagen is maintaining a subdued outlook for the Chinese automotive market through the remainder of the year. "The Chinese automotive market is under increasing pressure," the Volkswagen Group stated in Beijing. Furthermore, the company does not expect the market to recover or recoup its losses as the year progresses.

The Wolfsburg-based automaker anticipates that the total market for new vehicles will decline to below 21m units. "Volkswagen Group China cannot escape this trend. We are adjusting our plans accordingly," Germany's largest carmaker explained. No further details regarding these adjustments were provided.

Earlier, the China Passenger Car Association (CPCA) reported a 19.5 percent drop in sales for the first five months of this year compared to the same period last year. Volkswagen cited changes in subsidy and tax policies, rising fuel prices, and persistent price competition as reasons for the market development, noting that these factors have impacted consumer confidence and weighed on overall demand.

At the same time, the Group remains optimistic. "Our sales of fully electric vehicles continue to grow steadily," the company stated ahead of its annual general meeting this Thursday. With strategic realignments and a model offensive for electric and plug-in hybrid vehicles, the company maintains it is "well-positioned for the challenging market environment."/jon/DP/zb