Demand for cars moving into a slower lane

Consumer demand for vehicles in the next few months will be weaker than at the beginning of this year, according to the 2014 China Auto and Auto Parts report released on Wednesday by UBS Securities Co Ltd.

Passenger vehicle shipments will expand 11.8 percent in 2014, and sales of all types of vehicles will rise 10.7 percent, the report said. Production capacity for passenger vehicles will increase 12 percent this year.

The contribution to sales by coastal cities, which have been leading growth in Chinese vehicle sales, is reaching a "tipping point" of about 55 percent. UBS said that the contribution of these cities will cease its rapid growth, and inland regions will start to take a larger market share.