Automobile production in China in the first quarter of 2004 reached 1.3 million vehicles, a year-on-year increase of 25.6%, according to the China Automotive Industry Association. Of the cars that were produced from January to the end of March, 1.28 million were sold, a year-on-year increase of 28.9%. China, whose automobile production is projected to reach 5.15 million vehicles this year, is expected to surpass Germany as the world's third largest car producing country by 2005.