12 percent of the cars at Beijing auto show 2016 are new energy models, predominantly pure electric cars.

The Beijing autoshow 2016 is going electric, not only because Tesla is here, but because many brands are taking on Tesla with their own e-cars. That includes the world’s biggest auto group in sales.

"Tesla proves e-cars can be sexy, sporty and luxurious," said Jochem Heizmann, Volkswagen Board member for China.

That’s exactly where Volkswagen's premium units are cutting in.

China wants to have 5 million electric vehicles on the road by 2020. And local brands have invested almost 6 billion US dollars into new-energy vehicles over the past five years.

The outcome? Several concept cars dubbed "Tesla killers" this year.

"I think different oems doing EV, startups make EV cars, to build brand. traditional oems already have everything, they won’t go too fast cuz they have traditional cars," said Junyi Zhang, Partner in Auto, Roland Berger China.

"EV for premium brands, keep their brands innovative, EV performance higher than traditional cars, also need to prove they can deliver such cars, to fulfil their requirement for customers. Startup companies they will start with full ev, cuz they don’t know how to make traditional engine cars, so they just go EV."

Denza is created by Warren Buffett backed BYD and Germany's Daimler. The E-car is designed to compete with Tesla and BMW’s i3 but with lower pricing. It is beating Tesla in first-year sales in China.

"There were 330,000 new energy cars sold in China. That’s a rapid growth, and bodes well for the investments into EV technologies," said Lorraine Yan, CEO, BYD Daimler New Technology.

"However, people are comparing EVs with fuel-driven cars, saying electric cars still need to improve their performance, range and safety. And we are currently testing some of those technologies."

That demand for better EVs means big orders for auto suppliers. But there's one concern.

"That is why China matters," Bosch board member Rolf Bulander said.

That economy of scale will bring down EV’s production costs, including batteries.

But the government is pulling back its subsidies on EV sales.

"The quality is mixed among Chinese made EVs. Most are not really loved by consumers," said William Li, Bitauto CEO, Nextev Co-founder.

"Between 2016 and 2017 – due to falling subsidies, and crackdown on subsidy fraud, I feel the growth may not be as fast, unless it’s in BJ or SH with license restrictions. I feel in 2017 – electric cars will see a cold winter."

That means the country needs more charging stations with greener electricity, rather than just sales numbers, to truly electrify the world.