A spokeswomen for Germany's transport ministry says Volkswagen's Audi brand is being told to recall 127,000 cars diesel cars that reduce emissions controls when not being tested.

Ministry spokeswoman Svenja Friedrich said that the motor transport agency had examined Audi diesel engines designed to meet the latest Euro 6 emissions standard and found that under real driving conditions there was "no reduction" of harmful nitrogen oxides.

She said 77,600 of the cars were registered in Germany and that the affected models were: the A4, A5, A6, A7, A8, Q5, SQ5 and Q7. Audi must first agree on a fix with the agency and then notify owners of the repair action.

Audi said the cars were already part of a voluntary upgrade action affecting some 850,000 vehicles to improve emissions performance.