KMPG--- China's automotive sector has been on a roller coaster ride. From steady growth in 2003 to hand wringing over slow growth and price wars in 2004, the market has been anything but predictable. To date 2005 has been a relatively positive year for the industry, yet views on the long-term development of the market cover a wide range of opinions. The auto sector in China is still developing and is far from becoming one single, seamless and integrated market---providing plenty of ammunition to support the positions of both market optimists and pessimists.

Main contents:

·Passenger car exports

·Component and aftermarket sector

·Car-related services