Shanghai now has 10 percent of China's green cars.

As more EVs hit the road, there is a growing need to make them safer, smarter and more linked.

An enclosed test zone for connected and self-driving cars in Jiading is where many Chinese and foreign smart cars are tested before being mass produced.

Known as the F-Zone, the site is considered the best in China and is one of the most advanced in the world.

Connected cars are put through as many as 50 simulation programs, such as pedestrian and non-motor vehicle crossing alerts, intersection collision avoidance and collaborative highway fleets.

Automated driving tests include collision avoidance, exiting systems under dangerous conditions and response ability.

"The zone is blueprinted to reach beyond an enclosed area for real road tests and offer more simulations, such as in different weather conditions," said Gu Leiming, from SIAC management, who supervises the F-Zone.

Experts including Li Keqiang, professor of the Department of Automotive Engineering at Tsinghua University, believe that after new energy cars, intelligent connected vehicles will be the next big thing in the auto industry.

China has been the world's largest auto market for years.

The country's home-grown manufacturers have gained a one-third share of the domestic market, or 28 million vehicles last year, turning from imitators to initiators in research and development.

"With a huge and robust market, an ever stronger information industry, innovative industrial policies and the self-developed BeiDou Navigation Satellite System, China might have an edge on competitors in developing intelligent connected vehicles," Li said.

In 2015, the country announced the "Made in China 2025" initiative, focusing on promoting high-end manufacturing, with energy-saving and new EV models being key goals.

By 2020, Shanghai is set to work on about 60 major industrial projects, each worth over 1 billion yuan. The development of intelligent connected vehicles is on the list.