VW China Chief in contest with GM.

Volkswagen AG's China chief said on Saturday he's optimistic in the company's outlook for this year, saying "volume isn't everything" in the competition with General Motors Co (GM.N) to lead the world's largest car market.

The company must also look out for profitability and "residual value", Jochem Heizmann, head of Volkswagen Group in China, told Reuters on the sidelines of an auto industry conference in Beijing.

GM surpassed VW for passenger vehicle sales in China in 2015, according to China Association of Automobile Manufacturers data.

Volkswagen's global business has come under increased scrutiny since it admitted in September to misleading U.S. regulators about emissions with the help of on-board engine control software.