Volkswagen is ready for Europe's planned 2035 ban on new sales of fossil-fuel cars as it ramps up its electric vehicle lineup, Chief Executive Oliver Blume said at Munich's IAA mobility show.

"We are prepared for the 2035 combustion ban in Europe," Blume told reporters at the car show.

He said that through its partnerships in China, the world's No. 2 carmaker will be able to lower its battery costs via a 50% reduction in cost at the cell level.

Europe's carmakers are under pressure from Chinese EV makers, who have developed cheaper, more consumer-friendly models at home in China and are now expanding to Europe.

"I think we have great chances," Blume said. "We know how to build cars, with top quality. We will have to work hard on the cost side."