About euro 15.4 billion, or 70 per cent of the total, will be invested in new cars and sports-utility vehicles along with developing technology, the Ingolstadt, Germany-based carmaker said on Friday in a statement. Audi targets two million deliveries annually after achieving a goal of selling 1.5 million vehicles in 2013, two years ahead of its original plan.
"We are now decisively steering toward our next milestone," Chief Executive Officer Rupert Stadler said in the statement. "This is why we're keeping our foot on the gas pedal regarding investments."
More From This Section
The budget is equivalent to spending euro 4.4 billion a year, an increase from a previous plan that called for investing euro 4.3 billion annually on new models and expanding production capacity. The VW unit aims to overtake Bayerische Motoren Werke AG (BMW) as the world's biggest luxury-car producer by the end of the decade. Audi's expansion is part of Volkswagen's euro 84.2-billion investment programme to beat Toyota Motor and General Motors in global sales.
Volkswagen rose 1.3 per cent to euro 204 at the close in Frankfurt. The stock has been trading at the highest price since November 1992 for about a week, valuing the carmaker at euro 92.5 billion.
BMW is seeking to fend off challenges by Audi and Mercedes-Benz with its own expansion. The Munich-based car maker is introducing 25 models in 2013 and 2014 including 10 vehicles, such as the Rolls-Royce Wraith, that have no predecessor. BMW said in November that its spending will exceed targets this year and continue at a high rate in 2014.
Daimler AG's Mercedes, which ranks third in the luxury segment, plans 13 all-new models by the end of the decade, while Audi is widening its SUV lineup. Stuttgart-based Daimler said on Friday that it will invest euro 200 million in a vehicle-technology and testing center in the southern German town of Geisingen-Immendingen.
Audi plans to increase its product range to 60 models by 2020 from about 49 currently. The third generation of its TT coupe is scheduled to go on sale next year, joining newly introduced electric- and natural gas-powered variants of the A3 Sportback (pictured), the carmaker said on Friday. Audi will also add to its SUV lineup with the subcompact Q1 in 2016.
To meet anticipated demand for its vehicles, the manufacturer is adding production in China, Brazil and Mexico, in addition to upgrading its German plants.
"With this investment program, we are launching our next stage of growth," Chief Financial Officer Axel Strotbek said in the statement.