Wolfsburg (Germany), Feb. 25 (AFP): German auto giant Volkswagen has raced back into the black in 2016 as car sales hit an all-time high, in the latest sign of its "dieselgate" scandal fading into the rear-view mirror.

VW reported a net profit of 5.1 billion euros ($5.4 billion) last year, recovering from a stinging 1.6-billion-euro loss in the immediate aftermath of the emissions cheating revelations in 2015.

"While the past fiscal year posed major challenges for us, despite the crisis the group's operating business gave its best-ever performance," chief executive Matthias Mueller said in a statement.

The VW group -- which includes the brands Porsche, Audi and Skoda - beat analyst expectations with record revenues of 217.3 billion euros, up nearly 2 per cent on the year before.

Underlying or operating profit rose to 7.1 billion euros, from a loss of 4.06 billion in 2015, the statement said.

Despite the damage to its reputation by the dieselgate scandal, the group delivered 10.3 million vehicles in 2016, driven by strong demand in Europe and the Asia-Pacific region.

The record result meant VW overtook rival Toyota to become the world's top-selling carmaker.

For 2016, the group said it planned to raise the dividend payout from 0.11 euros to 2 euros for preferred shareholders, and from 0.17 euros to 2.06 euros for ordinary shareholders.