Volkswagen denied a report that its sales have slumped since this month's admission that it had understated the level of carbon dioxide emissions for some cars.

German daily "Frankfurter Allgemeine Zeitung" ("FAZ") had reported on Saturday that Volkswagen's sales were declining significantly, citing an unnamed dealer as saying business was "dead as a doornail".

"We cannot confirm the statement quoted in 'FAZ'," said a spokesman for Volkswagen in an emailed statement. "The feedback we are receiving from discussions with representatives of various dealerships across the country, as well as the numbers we have, paint a different picture of the situation in Germany." 

VW said on 3 November it had understated the level of CO2 emissions from about 800,000 cars sold mainly in Europe, and consequently their fuel usage.

That revelation deepened a crisis at Europe's biggest carmaker which initially centered on software on up to 11 million diesel vehicles worldwide that VW admitted vastly understated their actual emissions of smog-causing pollutant nitrogen oxide.

Sales of Volkswagen-branded cars fell 5.3% in October, the first full month after the scandal erupted, a slightly steeper decline than September's 4% drop.