Volkswagen's Audi division plans to spend nearly €24bn ($29.3bn) on new models, plants and technology over the next five years, an increase of €2bn from the previous planning period.
Audi said it is expanding the 'biggest investment program in its history' to the 2015-19 period.
Approximately €17bn will be invested in property, plant and equipment and €7bn in capitalized development costs.
Around 70% of the total investment will be directed towards developing new models and technologies such as emission-cutting plug-in hybrid vehicles.
Audi is working on the next generation fuel-efficient gasoline and diesel engines, and plug-in hybrids to meet CO2 emission limits.
Audi chairman of the board of management (CEO) Rupert Stadler said: "We place top priority on sustainable growth. That's why we are making large investments in the innovative areas of electric mobility, connectivity and lightweight construction."
The company will expand its manufacturing facilities in Germany and abroad.
Audi board of management member for finance (CFO) Axel Strotbek said: "The sites in Ingolstadt and Neckarsulm are the basis for our international success. We therefore plan to make more than half of the total investment in Germany."
Workforce will also be expanded in its plants in Germany.
Image: Audi A3 Sportback e-tron production at Ingolstadt. Photo: courtesy of Audi.
