SHANGHAI -- Major global automakers are boosting production of electric vehicles in China, hedging against the risk of supply chain disruptions amid bilateral tensions with the U.S.

As the world's largest EV market, with sales estimated to reach 9 million vehicles this year, China is too big to ignore despite the geopolitical risks. At the Shanghai International Automobile Industry Exhibition that kicked off Tuesday, companies vied for attention by touting local R&D and new electric models designed for Chinese consumers.

Honda Motor announced Tuesday at the show that the second model in its e:N electric line would roll out in early 2024, followed by a third model later in the year.

The Japanese manufacturer is building dedicated EV factories in Wuhan and Guangzhou, through joint ventures Dongfeng Honda Automobile and Guangqi Honda Automobile. Depending on how fast these projects move, production of the e:N series could start as soon as next year.

Honda is rushing to build a local EV supply network, inking a battery purchase contract with Contemporary Amperex Technology (CATL) running from 2024 to 2030. The automaker owns about 1% of CATL, the world's largest maker of electric-vehicle batteries.

Also on Tuesday, Mazda Motor said it will produce a hybrid version of the CX-50 sport utility vehicle, first unveiled in China, in Nanjing.

Volkswagen intends to open its third Chinese EV plant later this year in Anhui province, which will provide an annual capacity of 350,000 vehicles. Group company Audi's first EV factory in the country, slated to open by the end of 2024 in Jilin province, will be able to turn out 150,000 vehicles a year.

Volkswagen CEO Oliver Blume said the German company plans to continue investing in China, adapting to the changes underway in what he called an extremely important market.

The U.S., meanwhile, seeks to draw EV investment with the subsidies included in last August's Inflation Reduction Act. The tax breaks for new electric models are limited to vehicles assembled in North America. The critical minerals in their batteries must be sourced from countries with which Washington has a free trade agreement.

The requirements already are spurring announcements of new investments in the U.S. by automakers like Honda, which is building a battery plant in Ohio with South Korea's LG Energy Solution and adapting existing assembly facilities for EV production.

Shinji Aoyama, a senior managing executive officer at Honda, declined to comment on geopolitical risks when asked by reporters Tuesday about U.S.-China frictions. But he did say that "we want to make sure that we meet the requirements" for subsidies under the Inflation Reduction Act.

Electric vehicle output in China looks poised to keep growing as automakers build production networks and local players seek to boost exports to markets such as Southeast Asia. LMC Automotive expects the annual tally to more than double between 2022 and 2029 to 12.56 million vehicles.

"Even with the tensions between the U.S. and China, major automakers, including Japanese companies, that maintained a certain market share with gasoline vehicles will probably keep investing in electrification in China," said Hiroto Suzuki, partner at consulting firm Arthur D. Little Japan.

But "I get the impression that some automakers are taking a wait-and-see stance on additional investment in China" amid the rapid gains being made by local rivals in the EV market as well as uncertainty over the outlook for the U.S.-China situation, Suzuki said.