Fears that China's automobile industry could be harmed by a cut-throat export market have prompted the government to tighten control of the market.

A new regulation, to be issued next year, aims to raise the access standard for exporters and phase out poor performers, said Zhang Ji, vice director of China Commerce Ministry.

The move comes in response to surging auto exports that have led to declining profits and falling prices.

Customs statistics show vehicle exports rose from 20,000 in 2002 to 173,000 last year.

In the first four months of this year, the country exported 87,000 vehicles, more than half of last year's total.

In 2005, the value of complete vehicle exports reached 1.58 billion yuan, up 158.4 percent from the previous year.

The remarkable sales prompted a boom in export dealerships and fierce competition as exporters lowered prices, the Guangzhou-based 21st Century Business Herald has reported.

Of the 1,025 registered exporters last year, more than 600 exported fewer than 10 complete vehicles each, and 160 just one each.

Meanwhile, the price of complete auto exported dropped from an average 16,100 U.S. dollars in 1990 to 9,100 dollars last year. The price of a sedan fell from 8,700 dollars last year to 7,100 dollars in the first four months of this year, according to the ministry data.

Zhang said the country needed to standardize the cost of exports in order to prevent a drastic fall in prices.

The costs of environmental protection, land, and social responsibilities should be calculated into prices, he said.

Fu Peizhao, a senior engineer with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, agreed, saying inattention to after-sale service and spare parts supply would damage the Chinese industry's image.

The government was also reported to be reviewing penalties for enterprises engaging in unfair pricing.