The government intends that Chinese-brand passenger vehicles will comprise at least half of vehicle sales by 2015 and sedans made by entirely domestic automakers will have about 40% of the nation’s car market.
Statistics from the China Association of Automobile Manufacturers (CAAM) show that 4.58 million Chinese-brand passenger vehicles were sold last year, some 44.3% of the total.
Sales of domestic sedans were 2.22 million units, almost 30% of the segment.
Industry insiders said the new policy will also focus on accelerating consolidation between automakers and could lead to a new round of reshuffling.
China became the world’s largest auto producer and market last year with both production and sales surpassing 13.5 million vehicles due in part to government incentives.
China Car Times reported the new policy will reportedly stipulate that Chinese partners hold at least a 50 percent share in newly built Sino-foreign joint ventures that produce core parts for alternative-energy vehicles.