India, May 9 -- Volkswagen AG's namesake brand plans to bolster its offering of plug-in hybrid cars in response to a slowdown in demand for fully electric vehicles. Expanding its portfolio of models with both a battery and an engine is among the VW brand's top priorities, Chief Executive Officer Thomas Schafer said Wednesday. The move is a shift from its previous strategy of focusing mainly on full EVs.

Customers "want plug-in hybrids now, including in China and the US," Schafer said in an interview on the sidelines of an auto-industry conference in London.

Volkswagen has been tweaking its EV strategy after model delays and falling behind in China, where local brands dominate. Last year, the manufacturer scrapped plans to build a dedica...