This year the company is launching the new Cadillac CTS midsize luxury sedan, two new SUVs (the Chevrolet Trax and a new midsize entry from Buick), the Baojun 730 seven-seat family vehicle and 610 hatchback, upgraded versions of the Buick Enclave and GL8 as well as a next-generation Chevrolet Cruze.

Investments in GM’s quality growth will include the opening of five new manufacturing facilities by the end of 2015: four vehicle assembly plants and one powertrain plant. With additional facility expansion between 2014 and 2020, GM China’s manufacturing capacity will increase by 65%.

GM is also continuing to expand its presence in the central and western regions of the country. These areas already represent about 45 percent of GM’s domestic sales. GM will add dealerships and manufacturing facilities in these regions, including plants in Wuhan and Chongqing by the end of 2015.

Tsien and General Motors President Dan Ammann also discussed some of the trends shaping China’s auto industry in the next few years, including:

• Luxury vehicles are expected to make up at least 10 percent of auto sales by 2020, and GM will add one new Cadillac per year through 2016.

• The SUV market will reach 7 million by 2020, or triple what it is today. GM will add 11 new SUVs between now and 2018.

• MPV sales will likely double to 2.8 million by 2020, from about 1.4 million last year. GM has demonstrated success in this area, with the Buick GL8 and Wuling Hongguang series and more entries to come from its other brands.

• In 2020 compact sedans will still be the most popular segment, with about 10M annual sales. GM offers the Buick Excelle family, Chevrolet Cruze and Baojun 630 and has more new models in the segment under development.

• Within six years, replacement or repeat purchases in China could exceed two-thirds of industry demand, compared to one-third today. This trend is expected to drive demand for more diverse offerings.

One means for GM and its joint ventures to achieve their ambitious growth plans is by creating new vehicle technologies locally. The Research and Development team at GM’s Advanced Technical Centers in Shanghai recently developed a magnesium alloy Vertical Squeeze Casting (VSC) machine—the first designed for developing next-generation magnesium castings—which are 30% lighter than aluminum parts and can improve a vehicle’s fuel economy by as much as 7% for every 150-kilogram reduction in weight. (Earlier post.)

GM will also continue to strengthen its focus on innovation through its Pan Asia Technical Center (PATAC) joint venture, which will open a new facility in Shanghai next year, and the GM China Advanced Technical Center in Shanghai.

Helping make the local community greener, safer and healthier is another key focus, Tsien explained. GM will maintain its support of corporate social responsibility initiatives across China such as the three-year GM Restoring Nature’s Habitat Project, which is helping protect key wetlands in eastern China. GM is also supporting the Chevrolet Red Chalk Program to educate children in rural areas.

The company’s Safe Road Project, which is educating drivers and other road users on proper road safety, will be expanded in June with the launch of a new project to help increase children’s safety in and around cars.

GM has 12 joint ventures, two wholly owned foreign enterprises and more than 58,000 employees in China. GM and its joint ventures offer the broadest lineup of vehicles and brands among automakers in China. Passenger cars and commercial vehicles are sold under the Baojun, Buick, Cadillac, Chevrolet, Jiefang, Opel and Wuling brands. In 2013, GM sold nearly 3.2 million vehicles in China.