Cy Shelton, 57, district manager of the Volvo Corp. and an Alexandria resident since 1960 who was active in church organizations, died of cancer Sunday in Alexandria Hospital.

Between 1960 and 1965, Mr. Shelton was a regional vice president for operations of Volkswagen of America Corp. He also served on the board of Capitol Car Distribution, a Volkswagen distributorship.

Mr. Shelton then joined the Commerce Department for a year as a special automotive trade consultant. He joined Volvo in 1967, becoming district manager in 1971.

He was a member of the First Baptist Church in Alexandria and helped establish its blood bank and ministry to the deaf. He was a member of the National Defense Executive Reserve of the Transportation Department.

Mr. Shelton was a native of Chatham, Va., and a 1948 graduate of the Chatham Business College. He served with Gen. George S. Patton's Third Army in Europe during World War II. From 1953 to 1959, he worked for the Chrysler Corp. in Memphis. He then moved here to join Volkswagen. f

Survivors include his wife, Gerry Edwards Shelton, of Alexandria; a daughter, Terri Anastopoulos, also of Alexandria; a brother Landon O., of Bowie; a sister, Louise Bennett of South Boston, Va.; his father, James William Shelton of Falifax, Va., and his mother, Izma Roach Shelton of Chatham.

The family suggests that expressions of sympathy be in the form of contributions to the Memorial Fund of the First Baptist Church in Alexandria.