Despite the Dieselgate emissions scandal, Volkswagen achieved record group sales in 2016 of 10.3m vehicles, including a 12% jump in December.
That should put VW ahead of Toyota as the world's largest car producer by volume, Reuters reported.
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VW on Tuesday reported a strong finish to 2016. December deliveries including its Audi and Porsche luxury brands rose to 933,300 vehicles from 834,700 a year earlier, with double-digit gains in China and the United States offsetting declines in Germany and Brazil. Its full-year deliveries rose 3.8% from 9.93m in 2015, the company said.
Toyota said last month it expected to end 2016 with sales of 10.09m vehicles, slightly below an initial forecast of 10.11m.
Toyota topped delivery rankings for the past four years but trailed VW at mid-year, and is expected to report its 2016 deliveries in early February.
NordLB analyst Frank Schwope told Reuters he expects VW to be able to keep the world top carmaker crown this year but said the gap with rivals may shrink as demand in China, which accounts for nearly 40% of VW group sales, may weaken because of plans to reduce or phase out tax breaks for small engine cars.
"VW is heavily exposed to possible setbacks in China," said Schwope.
