Volkswagen got off to good start in Q1

German auto giant Volkswagen said on Wednesday that business got off to a good start in the first three months of this year, thanks to higher demand and the falling euro.

VW said in a statement that its net profit jumped by 20.6 percent to 2.887 billion euros ($3.2 billion) in the period from January through March.

Underlying or operating profit grew by 16.6 percent to 3.328 billion euros on a 10.3 percent increase in revenues to 52.735 billion euros, the statement said.

Customer deliveries increased by 1.8 percent to 2.487 million vehicles worldwide.

"In addition to exchange rate effects, (business) was positively affected mainly by higher volumes and an improved mix," the carmaker said.

"We've always said that 2015 will be a challenging year for the automobile industry as a whole, but for us, too," said chief executive Martin Winterkorn.

"But our key figures for the first quarter show that the Volkswagen group is on course, despite the tailwinds," he said.

Looking ahead, VW said that "the difficult market environment, fierce competition, interest rate and exchange rate volatility and fluctuations in raw materials prices all pose challenges."

Nevertheless, VW aimed to lift unit sales, revenues and operating profit in the whole of 2015, it said.