Volvo has three factories in China.
Daimler, which has trailed German peers BMW and VW-owned Audi in terms of expanding its Chinese manufacturing capacity, is also preparing to make Mercedes-Benz electric cars in Beijing. Automakers are scrambling to develop models with consumer appeal.
"We believe the future of driving will be autonomous driving and that is true for China as well", said Daimler's China CEO Hubertus Troska, adding the firm would push to bring the next-generation functions to the Asian giant.
Models on display at Auto Shanghai 2017, the global industry's biggest marketing event of the year, reflect the conflict between Beijing's ambitions for environmentally friendly cars and Chinese consumers' love of hulking, fuel-hungry SUVs.
Foreign automakers have always been building cars in China to meet surging demand in the world's most populous nation.More news: Trump signs directive on foreign tech hires
South Korea's Kia Motors Co. debuted an SUV-inspired crossover, the K2 Cross, designed for the Chinese market.
GM said its Velite 5 hybrid will be sold by Buick, which has modest sales elsewhere but is GM's main brand in China.
"There is a clear (Chinese) government policy in favour of electromobility - high subsidies and an industrial framework in the form of joint venture companies which are being encouraged to invest in this technology", Diess said, adding Beijing appeared to be trying to replicate the success of hybrid auto technology in Japan and diesel vehicles in Germany.
Details of the plug-in electric drivetrain have not been released but MG says that it makes the E-motion capable of a sub four-second 0-62mph time, while having a range between charges of more than 310 miles.
In order to defend its market position in China, VW will invest in locally developed electric vehicle technology, Diess said.More news: Katy Perry faces wrath as she posts picture of Goddess Kali
Volvo Cars has announced that it will build its first fully electric vehicle in China, as part of its larger commitment to sell a total of 1 million electrified cars - including fully electric cars and hybrids - by 2025.
Policymakers say reducing subsidies gradually to 2020 will wean automakers off government support and create a self-sustained market for electric vehicles.
Ford announced plans earlier to manufacture a hybrid sedan, the Mondeo Energi, with a state-owned Chinese partner, Chang'an Automobile Co. News reports say regulators might have agreed to lower or delay them in an updated plan due out this year, but there has been no official confirmation.
Sales growth was up to 1.7 percent in March from in 2016's 15 percent.More news: Topsy-turvy French election still has surprises in store
- Pence tours Southeast Asia's largest mosque
- Russia vetoes UN statement on North Korea's missile tests
- Nina Dobrev Knows Makeup Isn't What Makes Someone Beautiful!
- Japan and Australia to deepen ties amid North Korea tension
- Women Need Not Change Name in Passports After Marriage: Modi
- Gorsuch's Swearing-In Ceremony Was Designed to Coax Justice Kennedy Off the Bench
- UK defence minister says Russia responsible by proxy for Syria chemical deaths
- Relentless Monaco dream on after reaching semis
- Blackhawks get shut out in second straight playoff game
- Topsy-turvy French election saves biggest surprise for last