The German automaker is expected to partner with Navistar for a medium-duty electric truck in North America by 2019.
Volkswagen Group's truck and bus division is preparing to spend the equivalent of $1.7 billion on electric powertrains, autonomous systems and advanced software.
Speaking to Bloomberg, division chief Andreas Renschler said the MAN and Scania brands will launch all-electric buses next year in European cities. The company is also preparing to accommodate demand for electric delivery trucks, though the adoption rate is expected to lag the growth of EVs in the consumer automobile market.
"We believe in a wide range of alternative powertrains and fuels, depending on local availability, social and local demand and customer requirements," he said.
A separate Reuters story focuses on a partnership with Navistar to launch an electric medium-duty delivery truck in North America by late 2019.
VW is said to be preparing to test nine different electric trucks that can haul around 18 tons for up to 112 miles on a single charge.