Car market forecast upbeat

The McKinsey report predicted that the share of small cars will drop from 23 percent to 19 percent by 2020, while larger models' percentage will increase to 8 percent from the current 5 percent.

"Chinese customers have become more sophisticated and discerning, and they will be able to afford more expensive cars as incomes rise," said Liao.

China has become a major battle ground in recent years for nearly all the world's major automakers, as they fight to break the traditional dominance of Japanese brands in the market.

A number of international names are showcasing their latest models at this week's Guangzhou auto show, including Hyundai, Citroen, Volkswagen, BMW, Mercedes-Benz, General Motors, and Ford.

Organizers said that 950 models will be on display, 50 more than last year, with 34 making their global premieres and 23 their Asian debuts - both records in the show's 10-year history.

According to reports, highlights are expected to be the Volvo Cross Country, the Jaguar F-Type unveiled at the recent Paris auto show, and the latest version of the Santana from Shanghai Volkswagen.

lifangfang@chinadaily.com.cn

For more subscription details ofAutoChina, please visit our E-Shop.