Chinese people are expected to buy 5.8 million cars this year, a year-on-year rise of 12 percent, said Xu Changming, director of the economic consultative center under the State Information Center on Saturday.

The demand for saloon cars this year would be 2.75 million, up 17 percent on a year-on-year basis, said Xu at a forum on China's auto industry.

Xu predicted China's auto industry this year would be better than last year, but the blowout growth in 2002 and 2003 would never come again.

A report by the State Development Research Center said the growth of the automotive industry would keep dropping for the first half year of 2005, but in a slow pace.

The country's total car production would grow at 15 percent to 20 percent, producing and selling some 6 million cars, said the report.

Xu said further price cut would continue this year and attract more buyers. A survey by the State Information Center shows 63.8 percent of the residents would buy a car because of the price cut.

In 2005, China would lower its car import tariff for cars to 30 percent and abolish its quota system on car import. Xu predicted about 80,000 imported cars in storage would be sold in 2005.

(Xinhua News Agency January 23, 2005)