Volkswagen Group is looking to invest €160bn ($186bn) through to 2030, according to its CEO Oliver Blume, reported by Reuters.
The spending is set out in Volkswagen’s five-year capital expenditure plan that is revised annually.
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It compares with €165bn earmarked for the 2025–2029 period and €180bn allocated for 2024-2028.
The move comes as the German carmaker contends with difficult conditions in its two major markets, China and the US.
Volkswagen, whose portfolio includes the Audi and Porsche marques, has come under strain from US import tariffs and intensifying competition in China.
These factors have weighed particularly heavily on Porsche, which generates roughly half of its vehicle sales across these two markets.
The Reuters report quoted Blume as telling German weekly Frankfurter Allgemeine Sonntagszeitung that the latest investment framework will concentrate on Germany and Europe. It will span products, technology and infrastructure.
Blume said: “Over the next five years, the Volkswagen Group intends to invest €160 billion. The focus is on Germany and Europe, in products, technologies, production facilities, and infrastructure.
“At the same time, we are financing developments in future-oriented fields such as battery cells, software, and autonomous driving.”
He noted that whether Audi proceeds with a possible manufacturing plant in the US would hinge on the scale of financial incentives available from Washington.
Blume added that Porsche is not expected to expand in China, but indicated that building vehicles locally within the wider Volkswagen Group remains an option.
A Porsche model tailored specifically to Chinese buyers could be justified at some point, he said.
Volkswagen has been adjusting its approach in China.
In November, the group said that it aims to reduce the cost of developing electric vehicles (EV) in China by up to 50% following the full commissioning of its new test centre in Hefei.
It said the development brings “end-to-end development capabilities directly to the Chinese market”.
