Volkswagen raises its five-year spending plan to bolster its position in the competition for electric vehicle manufacturing against main rival Tesla.

The investment plan is raised to USD 193bn, with nearly 70% of investments allocated to electrical vehicles and software, writes Bloomberg News.

“We have set clear and ambitious targets and took necessary decisions to streamline processes,” said CEO Oliver Blume in a statement, according to Bloomberg News.

”This year will be a decisive year for executing strategic goals and accelerating progress across the group,” he added.

On Monday, Volkswagen announced plans to build a battery plant in Canada, the carmaker’s first outside Europe, as the company wishes to fast-track expansion in the US market.

Earlier this month, Volkswagen pledged to construct a new USD 2bn EV plant in North Carolina.

Volkswagen amended annual projections recently and expects revenue to climb as much as 15% with operating returns reaching as high as 8.5%, on full order books and better access to semiconductors.