Volkswagen AG is confident its China sales may rise in line with the overall auto market this year, as it explores potential cooperation with domestic firm Anhui Jianghuai Automobile Co, better known as JAC, in what could be a third partnership with Chinese automakers.

The head of the German firm's China business, Jochem Heizmann, said in Beijing he expected China's total passenger car market to perhaps even exceed gross domestic product growth in the world's second-largest economy.

"If we look to the general growth situation, it's still tremendous, big growth," Heizmann said, adding that there is potential for expansion in China's smaller cities despite the country's economy registering a weaker growth.