Auto industry likely to consolidate

China's auto industry, the world's most competitive, will likely consolidate from next year as slowing demand and rising material costs crimp margins, an official from the National Development and Reform Commission (NDRC) said.

"Some weak brands and less competitive players will start to be pushed out next year," Cheng Xiaodong, head of the vehicle-price monitoring arm of the NDRC, said. "Local carmakers with small profit margins will be hit first."

Chinese carmakers have been forced to slash prices, even as steel costs rise, to stand out among the 52 brands on sale, the most in any country. Car sales in Asia's largest auto market have also fallen for the last two months as rising fuel prices and a 64 percent stock market slump curb demand.