A week of carnage for shares of Volkswagen (XETRA: VOW3-DE) and its European rivals has left some investors questioning whether now is the time to buy into the battered sector.

Volkswagen's stock slumped 28 percent last week after the company admitted to cheating on emissions tests of its diesel vehicles in the U.S.

The scandal has impacted other European automakers, with the auto and parts sub-index of the Stoxx 600 (STOXX: .STOXX) down 11.5 percent in the past seven days.

Read More Mueller's daunting task to rescue VW from diesel deception

There were fears last week that German carmaker BMW (XETRA: BMW-DE) could also be involved in emissions manipulation after a claim from magazine Auto Bild, but the publication later backtracked on its report and BMW has denied any wrongdoing.

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