Volkswagen expects zero growth in the car market next year.
The third biggest carmaker, behind General Motors and Toyota, made the comment after it reported a sharp profit drop in the second quarter.
The company recorded a net profit of 283 million Euros, 83 per cent down on the year before, reports The Financial Times.
Detlef Wittig, VW head of marketing said: "We will be able to at least maintain our market position."
Wittig added half the 800,000 orders it had taken in the German market this year were thanks to the country's scrappage scheme.