Volkswagen has said its global sales increased 8.6% year on year in May, boosted by growing demand in China and the US.

Deliveries by Volkswagen’s seven car brands and commercial vehicles unit rose to 604,200 from 556,500 in May while sales for the first five months of 2010 were up 18% to 2.94m.

The group is pushing to achieve a second consecutive year of record sales as it chases Toyota to become the world’s biggest carmaker.

With sales continuing to grow in China, VW announced earlier this week it would build its 10th plant there as part of a plan to double production capacity in its biggest market to 3m vehicles within four years.

Group sales in China were 48% ahead of last year for the first five months at 777,800 units.

In the US, first five months deliveries increased 34% to 145,500 cars and SUVs while European sales rose 6.5% to 1.42m units, according to the automaker.

However VW sales in Germany fell 12% to 436,900 as the home market continues to suffer following the ending of the country’s scrappage scheme.