Rising prices

In January, prices of China-made vehicles also increased as a result of booming market demand.

Statistics from the price monitoring center at the National Development and Reform Commission (NDRC) show vehicle prices rose 2.38 percent from December and increased 1.34 percent year-on-year.

Car prices rose 2.33 percent from December, while commercial vehicles increased 2.13 percent.

"Prices reached a record high since 2006," said Cheng Xiaodong, an expert with the NDRC price monitoring center.

He predicts that vehicle prices are unlikely to drop in the coming months because "supplies cannot meet the market demand".

Booming sales and rising prices both mean more profits for automakers, said industry insiders.

Top executives of SAIC, Dongfeng, FAW and Jianghuai Automotive said they're optimistic about profitability with today's rising auto prices and stable raw material costs.

Industry analysts predict some leading automakers will see profits rise more than 20 percent this year.

Last year's combined revenues by the nation's 17 key automakers reached 1.51 trillion yuan, an increase of 30 percent over 2008.