Undermined by allegations of Uyghur forced labor, the German giant has sold its plant and test track in Xinjiang and has been overtaken by strong local competition in China, the world's largest market.

The automaker has long been criticized by human rights activists for doing business in the territory, where China has repressed Muslim ethnic groups.

German car giant Volkswagen said Wednesday it would sell its operations in China's Xinjiang region, where Beijing has been accused of widespread human rights abuses including forced labor.