Booming sales, but looming questions

Overcapacity, bewildering number of models could challenge profitability

After surpassing the United States in 2009 to become the world's largest auto market, China set a new sales record of 5.8 million units in the first four months of 2010 - a stunning 60 percent increase over the 3.6 million units sold during the same period in 2009.

This extraordinary sales momentum has understandably created a sense of euphoria among automakers, leading to many to announce plans to invest in additional production capacity in China.