Latest industry report makes grim reading for domestic car makers

One of the most influential insiders in China's car manufacturing industry has warned that half of the country's domestic auto brands could be wiped out in the next few years, as it's hard for them to recover from the current sales slump.

Revealing grim new industry figures, which show that vehicle deliveries in the first half of the year slowed to their lowest growth rate in 14 years, Dong Yang, general secretary of the China Association of Automobile Manufacturers, said one of the solutions to the slump for many local manufacturers lies in increased cooperation with foreign rivals in production and in research and development.

"The domestic automakers' dilemma will not change over the next two to three years, and will be even harder during the second half," Dong said.