Volkswagen, the world's largest automaker, said on Friday that its recovery in China was quickening but warned of geopolitical dangers as worries about Germany's dependence on the Asian powerhouse deepen.
The suspension of its activities in Russia and expenses associated with listing luxury brand Porsche caused the German business, whose brands also include Audi and Skoda, to see a decline in net profits between July and September.
However, deliveries in China, Volkswagen's largest market, increased by 26% in the same time frame and by 33% in just September.
The company, like other foreign businesses, experienced lockdowns and other limitations in China as a result of the government's zero-Covid policy, so the news is encouraging.
The group's CEO Oliver Blume, who will accompany Chancellor Olaf Scholz on a trip to the world's second-largest economy next week, stated that China remains a "important market for Volkswagen... We have excellent partnerships in China."