The quotas require car manufacturers to earn NEV credits equivalent to 10% of their total vehicle sales in 2019 and 12% in 2020, which Tsien believes GM's China ventures are on track to achieve. This is due in part to their current NEV models, which include the Chevrolet Volt and the Cadillac CT6 plug-in hybrid, as well as plans to introduce 10 additional NEV models in the next five years.
"We're on a path to achieve the NEV quotas that our joint ventures have," said Tsien, adding that some of the upcoming models may be made in China, depending on the supply chain and other factors.
Tsien also spoke about the potential of autonomous driving technology in China, where the government has designated certain areas for testing self-driving vehicles. GM's China ventures plan to launch Level 4 autonomous cars, which require no human input in most driving situations, by 2021, subject to regulatory approvals.
"We're encouraged by the progress that we've made with regulators and we're working very closely with regulators, especially in Shanghai, to enable the testing," he said.
GM is not the only automaker to invest in NEV production in China. Other companies such as Tesla, Ford, and Volkswagen have also announced plans to increase production of electric vehicles in the country. In addition to the NEV quotas, China has also introduced subsidies for buyers of new-energy vehicles and restrictions on the production and sale of gasoline and diesel cars.
The move towards NEVs in China is part of the country's efforts to reduce its air pollution and decrease its reliance on imported oil. It is also seen as an opportunity for automakers to tap into the world's largest car market.
Despite some challenges, such as a lack of charging infrastructure and consumer confidence in the reliability and range of electric vehicles, the NEV market in China is expected to continue to grow. According to IHS Markit, sales of NEVs in China are set to top 1 million annually by 2020.
GM's China ventures are optimistic about the future of NEVs in the country, with Tsien stating that "the charging infrastructure is being built up very rapidly and the cost of the batteries is dropping very quickly." He added that the company is "very bullish about the future of NEVs in China."
Whether or not GM's China ventures are able to meet the quotas for NEV sales by 2019, their investment in electric and autonomous vehicles underscores the growing importance of these technologies in the global auto industry. As the push towards NEVs continues in China and other countries, automakers that fail to adapt risk falling behind.