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Despite scandal, VW sales surge past estimates

Despite the ongoing scandal over the use of manipulative software in its diesel engine vehicles, Volkswagen reported surprise increase in September sales on Thursday.

The German automaker saw its U.S. sales increase 0.6 percent last month, surging past forecasts of a 7.3 percent decline, according to industry consultancy Edmunds.com.

When combined, Volkswagen and Audi U.S. sales rose a surprising 8.4 percent, compared to Edmunds' expectations of 2 percent fall.

Read More Volkswagen scandal creates brisk resale activity online

Earlier on Thursday, Volkswagen said it would halt the sale of around 4,000 vehicles in Britain due to software at the center of an emissions scandal, according to Reuters.

Last month, Europe's biggest carmaker has admitted cheating in diesel emissions tests on around 11 million diesel vehicles. The company said it will need at least several months to the bottom of the scandal.

Reuters contributed to this report.