Automaker to direct 68% of current investments to electric vehicles and software

Volkswagen AG, the largest automaker in Europe, has increased its five-year investment plan to 180 billion euros ($193 billion) as it intensifies its efforts to overtake Tesla Inc.

According to the corporation, spending on electric cars and software would increase from 56% in the previous plan to over 70% over the next 50 years.

VW increases overall spending by 13%.

“We’ve established clear, challenging goals for ourselves and taken the required actions to streamline procedures.” This year will be crucial for achieving our strategic objectives and accelerating the group’s overall growth, according to CEO Oliver Blume.

Volkswagen ascribed the increase in expenses to its efforts to produce batteries, which include up to six factories in Europe and the supply of raw materials to power electric vehicles.

Due to a full order book and improved access to semiconductors, VW’s revenue will increase by 15% this year, and its operating profit will reach 8.5%.