"Due to the dynamic development of the Chinese car market, Volkswagen is raising its current investment programme in China by an additional €1.6 billion" through to 2012, Europe's biggest automaker said in a statement.
The added investment brings the carmaker's total planned investment in China for the period to €6 billion.
Last year, VW earmarked some €4.4 billion in investment for China by the end of 2012, a market enjoying growth that has "exceeded all expectations," according to Martin Winterkorn, Volkswagen's chief executive.
In the first three months of 2010, VW delivered 457,259 vehicles to clients in China and Hong Kong, a gain of 61 percent on the same period last year.
"We will achieve on time our long-term aim of doubling our sales in China to two million units," said VW's head of Chinese operations, Winfried Vahland.
In 2009, VW sold 1.4 million vehicles in China, which has become an even bigger market for the automaker than its home base of Germany. Globally, VW sold six million cars last year.