SAIC Volkswagen will spend around 2 billion euros ($2.27 billion) over the next five years to enrich Skoda's portfolios in China, the biggest single investment the Czech brand has received since its entry into the Chinese market in 2007.

The investment is detailed in a joint memorandum signed by Volkswagen AG, SAIC Motor Corp Ltd and Skoda Auto AS in the presence of President Xi Jinping and his Czech counterpart Milos Zeman on Wednesday in Prague.

Founded in 1895, Skoda became a wholly owned subsidiary of Volkswagen Group in 1991.