Volkswagen, the German auto giant, said on Tuesday that it plans to invest 68% of its €180 billion ($192.6 billion) planned investment for 2023-27 in electrification and digitalization.
In the previous major five-year planning round, VW budgeted around 56% of the total investment funds of €159 billion for the technologies of the future. As early as 2025, every fifth vehicle sold by the group worldwide is to have an all-electric drive.
The company, which is based in Wolfsburg in Lower Saxony, reported its figures during its annual balance sheet press conference.
The company said its solid financial performance in fiscal 2022 lays the basis for profitable growth in key markets. Volkswagen remains well-positioned for future growth although overall delivery numbers declined 7% to 8.3 million vehicles in 2022.
Battery electric vehicles (BEV) deliveries rose 26% in 2022, with further significant models to be released in 2023. The company increased BEV deliveries in China by 68% in 2022, with strong demand for its highly competitive e-model range.
Overall, BEV deliveries in the United States were up 18.8% to 44,200 units. With a high order book of 1.8 million vehicles, the company expects supply chain bottlenecks to gradually ease in 2023.
"We have set clear and ambitious targets and took necessary decisions to streamline processes in FY22. FY23 will be a decisive year for executing strategic goals and accelerating progress across the group," Oliver Blume, Volkswagen Group's chief executive, said.
