The figure is a marked jump up from €1.34m in 2010 and the figures outlined a recorded turnover of €398m in 2011, up €55m on the previous year.
The Irish operation distributes and markets VW, Skoda, Seat and Audi vehicles here. The company ended the year with car sales of 20,749, or 23pc of the new car market.
The commercial vehicles division held a 24.7pc share of the light commercial market.
Its Irish operation is ultimately a wholly owned subsidiary of VW AG in Germany.
The popular brand of Volkswagen remains the dominant player in the new car market, slightly ahead of Toyota.
Although staff numbers fell, they totalled 32 employed in marketing and sales and a further 78 in spare parts and administration.