A German court ruled on Friday that VW should return the original price of a full-size golf car to all owners of the car who bought it in 2012.
The move is a blow to the automaker, with legal battles continuing for a fraud scandal in diesel car emissions.
Volkswagen said it believed the Augsburg court had abused the law, adding that it would appeal to the court in a higher court, Reuters reported.
A spokesman for the Augsburg Civil Court said the court ruled that Volkswagen behaved immorally when it supplied drivers with exhaust emission reading rigging, seeking to increase sales and profits by cheating customers.
The court ruled that Volkswagen would return to the owners the original price of about 30,000 euros ($ 34.2,000), according to a copy of the ruling.
"In our opinion, there is no legal basis for consumer complaints, consumers have not suffered losses or damage, cars are safe and driveable," Volkswagen said in a statement.
About 9,000 judgments were issued in connection with the gas emissions scandal, which was revealed in 2015, and that the majority of consumer complaints had not been successful in several courts.
"Thus, the decision of the Court of Augsburg is in contradiction with different decisions of other courts in similar cases."
About 11 million cars worldwide have been provided with programs that can circumvent exhaust emission tests in diesel-powered cars.
Volkswagen agreed to pay billions of dollars in the United States to settle claims from customers, environmentalists, states and vendors, and offered to buy back 500,000 environmentally friendly cars.
The company has not reached similar deals in Europe, where it faces billions of dollars in claims from investors and customers in its worst crisis since its inception.
