Volkswagen AG's diesel gate emissions cheating scandal pushed up sales of hybrid vehicle sales in South Korea to record highs, industry sources said Sunday.

According to Hyundai Motor Co. and Toyota Motor Co., which lead hybrid car sales in the country, demand for vehicles that can run on both electricity and an internal combustion engine, hit 24,490 units in the first 10 months of the year. The combined sales figure for the two companies represents a spike of 18.8 percent from 20,610 cars sold in the same period last year.

Hyundai, South Korea's largest carmaker, said it sold 17,747 Sonata hybrids, Sonata plug-in hybrids and Grandeur hybrids from January through October. The numbers represent a 20.4 percent surge from 14,746 units sold in the first 10 months of 2014, which at the time was an all-time record.

The carmaker said that while there was a tapering of demand in September, demand shot back up last month following the disclosure that Volkswagen had "defeat devices" installed in many of its fuel-efficient diesel cars. This software caused cars to spew more pollutants when driven on the road compared with when they were undergoing emissions testing.

So-called clean diesel cars have competed with hybrids thanks to their excellent fuel economy and because such engines offer much better driving dynamics vis-a-vis hybrids.

"The diesel gate scandal and subsequent recalls seem to have caused people who want good fuel economy to opt for hybrids," a local Hyundai dealer said.

Toyota, the global leader in hybrid cars, said its sales shot up 23.3 percent to 6,743 units up till October. Last year, the Japanese carmaker said it sold 5,864 hybrids in Asia's fourth-largest economy in the same period.

It said, like Hyundai, sales rose sharply in October after the Volkswagen's cheating hit the news. The company said it sold a new monthly record of 849 cars in the month.

Thanks to the rise in sales posted by Hyundai and Toyota, the local market for hybrids expanded 6.7 percent on-year in 2015 to 30,159 vehicles. Besides these carmakers, Hyundai's sister brand Kia Motors Corp. sells hybrids in the country.

A car industry observer said public perception about diesels has turned negative following diesel gate and with local carmakers expected to launch new hybrids in the near future, the market for "greener" cars should grow.

Reflecting this, Hyundai is expected to unveil a direct Toyota Prius rival early next year, while Kia will take the wraps off of its brand new K5 hybrid next month. (Yonhap)