The UK boss of Volkswagen is to face MPs as the pressure on the German carmaker over the diesel emissions scandal is cranked up.

Paul Willis, managing director of Volkswagen Group UK, will appear before the transport select committee on Monday, alongside the boss of the industry trade body, the Society of Motor Manufacturers and Traders.

Patrick McLoughlin, the transport secretary, will also be questioned as MPs try to uncover how the scandal was allowed to happen and whether other carmakers also rigged diesel emissions tests.

VW had admitted that 11m of its vehicles worldwide, including 1.2m in the UK, were fitted with software that was used to cheat environmental tests in the US. The company has put aside €6.5bn (£4.8bn) to meet the cost of recalling the cars, but also faces the threat of fines and legal action from customers and shareholders.

The European Investment Bank (EIB) has warned it could recall almost €2bn of loans it offered to the company.

Werner Hoyer, the head of the EIB, told German newspaper Süddeutsche Zeitung: “The EIB could have taken a hit [from the emissions scandal] because we have to fulfil certain climate targets with our loans.”

The EIB offered loans to VW to develop engines with lower emissions and will now conduct “very thorough investigations” to uncover whether the funds were used to cheat diesel emissions tests.

The EIB has granted loans worth about €4.6bn to VW since 1990, with €1.8bn outstanding.

The scandal continues to spread around the world, with VW recalling 1,950 diesel vehicles in China, and authorities in Singapore suspending the sale of VW diesel vehicles. China’s quality watchdog said it was “highly concerned” about the defeat device in VW’s diesel cars.

The General Administration of Quality Supervision, Inspection and Quarantine has demanded that the problem be addressed quickly and could take further action.