Volkswagen said on Wednesday it expected overall car demand in western Europe to improve 2-3% next year, Reuters reported.

"Overall as far as western Europe is concerned, we see an improvement of 2-3% next year," senior executive Detlef Wittig told Reuters on a conference call.

Reuters noted that VW said earlier its operating profit fell 53% in the first nine months due to weak demand, a strong euro and the cost of revamping its Brazilian operations.