Volkswagen profits fall by 30% due to drop in Chinese sales

Volkswagen has reported a fall in profits (Swen Pfoertner/dpa via AP)

Volkswagen profits fell 30% in the first three months of the year despite booming business in Europe and North America because sales dropped in China, where the German car maker is facing increasing competition from homegrown models.

After-tax profit fell to 4.7 billion euros (£4.1bn) from 6.7 billion euros (£5.9bn) in the first quarter of last year, the Wolfsburg-based company said.