Zhang, however, said the company may scale up investment plans and speed up new model launches in China to offset declines in other markets.

An official at the AQSIQ told China Daily on Thursday that it "is studying the details" about the Volkswagen scandal in the US.

The Ministry of Environmental Protection said it had no comments on the matter on Wednesday.

Many Volkswagen customers in China, however, expressed their indignation.

Li Hanchen, a 40-year-old owner of a previous-generation Sagitar, said he was "really shocked" by Volkswagen's move.

Li, who lives in Beijing, said: "It is a shame for Volkswagen. I hope it does not cheat in China."