Volkswagen, the leading German carmaker, said it sold more cars in China last year than in Germany.
It is the first time the company has sold more in a foreign country than in its own domestic market.
Volkswagen sold a total 697,961 VWs and Audis in China in 2003, a 36% increase from 2002.
The German company has been the leading car producer in China since the 1980s. Volkswagen last year announced an additional investment of US$1 billion in the country.