Volkswagen's (VOWG_p.DE) Audi luxury division said on Saturday it will increase spending on new models, plants and technology by 2 billion euros ($2.44 billion) to a record 24 billion euros over the next five years.

Audi, which contributes 40 percent to operating profit at Europe's largest automotive group, said more than half of planned investments will be assigned to its two German factories in Ingolstadt and Neckarsulm, confirming a Reuters story.

Audi, the world's second biggest luxury automaker, is also spending over 1 billion euros on new factories in Mexico and Brazil.

VW's flagship division is aiming to expand its model range to 60 from currently 50 by the end of the decade including new sport-utility vehicles and plug-in hybrid models.