Volkswagen grew its financial services business 8.8% year-on-year in Q1, writing just under 2m contracts during the period.

Financing business saw the biggest expansion at 613,000 contracts, up 15.4%. Leasing grew 4.3% to 439,000 new contracts.

The total portfolio included 10m leasing and financing contracts as of March, up 5.6% compared to Q1 2017.

Servicing contracts saw particularly strong growth. Servicing contracts totalled 4.2m as of Q1, up 19.2% year-on-year.

Volkswagen pointed to China, Japan and Italy as markets with “particularly positive development” for financial services.

Christian Dahlheim, chief sales officer of Volkswagen Financial Services, said: “Following our succesful financial year 2017, we have also made a good start to the new year. We have performed particularly well in Asia.

“The strong growth in service contracts shows that we are meeting customer demand for additional car-related services.”

In late 2017, Volkswagen realigned its financial services business to comply with financial capital regulations. Services are now provided through three different entitites: Volkswagen Financial Services, Volkswagen Leasing and Volkswagen Bank.