Auto sales in China will reach a record high of 6.4 million to 6.6 million this year, a 12 per cent rise year-on-year, the China Association of Automobile Manufacturers (CAAM) has forecast.

CAAM, one of the most important sources of industry information, reported that in 2005, 5.9 million auto units were sold in China, higher than Japan's 5.8 million and Germany's 5.2 million.

However, opinions in Chinese language press argued, after taking away China's export and the factor of double counting, the number of units actually sold in China was around 5.7 million.

Currently, 16 China-based car manufacturers are reportedly vying to roll out 25 new, smaller, low-emission models.