Czech carmaker Skoda, part of the Volkswagen Group, plans to invest around 2.5 billion euros over the next five years on future technologies, with more than half going to electric vehicle investment.

The Czech Republic’s largest exporter is hoping for a rebound in 2021 following a 14% drop in sales revenue in 2020.

Global deliveries remained above 1 million cars for the seventh consecutive year despite a 19% drop in production at the outset of the pandemic and lower demand in China, its biggest single market.

Chief Executive Thomas Shaefer said Skoda’s core market in Europe would be electric in the future, although it was still not time to completely switch away from traditional models.

Nevertheless, Skoda says its five-year investment plan includes 1.4 billion euros for electromobility development with a further 1.1 billion euros for digitalisation activities and plant modernisation.