There were 13,970 new registrations of Volkswagen branded vehicles in October, down 9.84 per cent compared with the same month in 2014, The Society of Motor Manufacturers and Traders (SMMT) said in a statement.
Sales of Volkswagen brands combined, comprising also Audi, Bentley, Porsche, SEAT and Skoda, fell almost six per cent in October year-on-year.
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But sales of expensive brands Audi and Porsche actually rose last month compared with October 2014, according to SMMT data.
Overall, sales of new cars in Britain dropped 1.1 per cent last month - the first fall in 3.5 years.
"The UK car market has gone through a period of unprecedented growth ," said SMMT chief executive Mike Hawes.
"As expected, demand has now begun to level off but the sector is in a strong position, as low interest rates, consumer confidence and exciting new products combine to attract new car buyers.