Buyers who opt out of leasing contracts with rival manufacturers will get a 5,000 euros bonus from VW if they switch to a Phaeton.
Customers who already lease a Phaeton also will receive financial incentives if they order a new Phaeton.
VW has also launched a "demonstration vehicle campaign" to increase sales of the Golf, the Touran and other VW models.
Dealers who order extra demonstration cars will receive a premium of six percent of the model's retail price. The dealers must keep the demonstration cars for a minimum of three months.