*

Sees 3% rise in deliveries this year vs 12% increase in

2023

*

Company plans a record number of new models in 2024

*

Shares down 0.65%

(Adds context on other automakers in paragraphs 4, 7 and 8, CEO

comment on electric cars in 9)

By Miranda Murray and Nick Carey

BERLIN, March 13 (Reuters) - Volkswagen

expects a 3% rise in its car sales this year, down sharply from

2023 amid a gloomy economic outlook and growing competition.

Presenting the German automaker's 2023 results, finance

chief Arno Antlitz said the "general economic situation remains

challenging," but added "we are confident about 2024, despite

the muted economic outlook and intense competition".

Volkswagen's deliveries to customers rose 12% to 9.24

million vehicles in 2023.

The automaker joins rivals in warning of a challenging year.

When Stellantis ( STLA ) reported results last month, it

predicted a "turbulent" 2024.

Volkswagen said on Wednesday it expected a boost to vehicle

orders in Western Europe in the coming months from new models

including fully electric ones.

The company, which recently launched the electric ID.7 and

plans a record 30 more new models during 2024, said it had

"started the new year with a clearly positive trend" compared

with the start of last year.

The new EV launches come as demand growth for electric cars

has been slowing. German rival Mercedes-Benz said last

month it was delaying its electrification goal by five years and

would keep revamping combustion-engine models.

When asked about demand for EVs, Volkswagen CEO Oliver Blume

said they were "the future, period", but added: "we're flexible

enough to adapt to changes in different markets".

Volkswagen shares were down 0.65% to 120.16 euros at 1000

GMT, within a flat German market.

The automaker this month announced a muted outlook for 2024

and a higher dividend, joining rivals including Stellantis ( STLA ), Ford

and General Motors ( GM ) in handing out cash to

investors.

Volkswagen has already announced plans to cut administrative

staff costs at its VW brand by a fifth, adding this would be

through partial and early retirement rather than layoffs.

The operating profit margin for the group's core mass-market

brands rose to 5.3% last year from 3.6% in 2022, with the

company targeting 8%.

($1 = 0.9153 euros)