Volkswagen plans to scale up electric-car production at two factories in China in a bid to go toe-to-toe with Tesla, Reuters reported Tuesday, as the traditional carmaker revs up its established supply and production systems to get ahead on the road to electrification.

The German automaker aims to churn out 1 million electric cars per year by the end of 2022 in a bid to outstrip its American competitor, according to manufacturing plans seen by Reuters. To hit that target, Volkswagen will turn to two of its plants in China — located in the cities of Anting and Foshan — which will have a combined production capacity of 600,000 vehicles.

That number is higher than Tesla, whose new facility in Shanghai will eventually produce up to 250,000 vehicles per year, around half of the company’s global production target of 500,000 Model 3 cars by mid-2020. The company previously set that target for 2018, but failed to hit it.

Volkswagen has been engaging with China for around four decades and today boasts 33 factories and some 95,000 employees in the country. The German manufacturer, along with its two joint ventures SAIC and FAW, shipped a combined 4.2 million vehicles across the Chinese mainland and Hong Kong, according to Volkswagen’s official website.

Tesla, meanwhile, is rapidly gearing up for full operation at its much-touted Shanghai “gigafactory.” On Thursday, the company said in its third-quarter earnings update that it had successfully trialed pre-production at the facility, a key hurdle on the path toward obtaining a full manufacturing license in China. The news came just 10 months after the company broke ground on the plant.

Contact reporter Matthew Walsh (matthewwalsh@caixin.com)