Volkswagen recalls more than 384,000 cars in China

Volkswagen said Wednesday it would recall 384,181 vehicles in China over gearbox defects, marking the German auto giant's biggest ever recall in the world's largest auto market, Daily Star reports.

The recall came after Chinese state television alleged in an annual corporate malpractice programme that Volkswagen had used substandard gearboxes in some models, causing acceleration problems and accidents.

In a company statement, Volkswagen said an electronic malfunction could cause its cars to lose power while being driven.

"In isolated cases, an electronic malfunction in the control unit or a lack of oil pressure inside the gearbox mechatronics may result in a power interruption," it said. Steering and braking would not be impacted, it added.

A spokesman for Volkswagen in China said the decision to recall was not initiated by the television programme, and the company had already been monitoring the issue.

China is hugely important to foreign car firms as the world's biggest auto market. The country's auto sales rose 4.3 percent year-on-year to 19.31 million vehicles in 2012.