FAW-Volkswagen, a Chinese venture of Volkswagen AG, started production of the new VW Jetta cars this March at its Changchun plant in northeast China.  [File photo]

In China, the majority of domestic enterprises are engaged in production, while advanced applications, such as design and technological development, are undertaken by foreign companies.

Many experts worry the car market's rapid expansion will result in surplus production, impede the sustainable development of the industry, and harm the country's overall economy.

Taking this into account, the State Council issued a document in September that listed the auto industry on the top of the industries to be restructured.