Currently, the world economy goes into downturn and most automakers are going into a mode of global contraction, however, they have remained confident about business prospects in China. Some of them have even embarked on ambitious expansion plans to cater for projected increase in demand in the longer term.

Recently, Toyota Motor and China FAW Group held a groundbreaking ceremony for its new 4-billion-yuan plant in Changchun, Jilin province in northeastern China. The plant, Toyota's sixth with FAW, will have an annual production capacity of 100,000 units. US auto giant, General Motors (GM), launched the construction of a new $250 million corporate campus in Shanghai, which includes a research and development center that will focus on the study of alternative fuels.

An auto expert said no major market is expected to grow faster or play a more important role in the ongoing development of the automotive industry than China.