"Some electric vehicles caught fire this year, attracting much attention. If not handled, they will hurt the segment," said Xu.

Statistics show that carmakers are offering around 200 new energy models in China, paving the ground for growth in the segment. Volkswagen intends to offer 14 electrified models to Chinese customers this year.

"The whole Chinese nation is already a front-runner in terms of electric driving," said Volkswagen CEO Herbert Diess.

"The Chinese government is guided by a clear road map to promote and boost the breakthrough of e-mobility," he said.

As part of its e-mobility offensive, Volkswagen plans to produce around 11.6 million e-cars in China by 2028. This is more than half of its global target of 22 million.

The company said its three Chinese joint ventures - FAW-Volkswagen, SAIC Volkswagen and JAC Volkswagen - will contribute to this. It is also aiming to improve the charging infrastructure in the country.

Klaus Froehlich, BMW board member responsible for development, said between 15-25 percent of the company's vehicles worldwide will be electrified by 2025, including plug-in hybrids and pure electric cars.

"We will offer more than 25 electrified vehicles by then," said Froehlich. China is expected to play an important role in BMW's electrification plan. It has signed a long-term agreement with China's battery supplier CATL. Two of its joint ventures in China will produce electric vehicles under the BMW and MINI brands.

The iX3 SUV will be made exclusively in China but sold overseas, said Froehlich. Authorities in China are working on policies to ensure the smooth development of the new energy vehicle industry.

Xin Guobin, vice-minister of industry and information technology, said the ministry is working on a long-term development plan for the segment from 2021-35.