Fuel price hikes

The nation's top economic planner, the National Reform and Development Commission, raised fuel prices twice in the first quarter of 2012 following continuing increases in the cost of crude oil.

It lifted the fuel prices by 300 yuan per metric ton in February and then by 600 yuan in March to 9,980 yuan for gasoline and 9,130 for diesel fuel.

The March increase was the biggest rise in government-controlled fuel pricing since June 2009 and boosted average retail prices for gasoline and diesel to record highs of more than 8 yuan per liter.

Increased fuel prices are expected to add more pressure on the car market this year, especially on the small, low-end vehicle segment whose customers have less discretionary income, market observers said.

Japanese push

In the last half of 2012, Japanese carmakers accelerated their China businesses as they recovered a devastating earthquake and tsunami in March that shook Japan's auto industry.

Nissan's joint venture in China with Dongfeng Motor Corp announced in July that it will invest 50 billion yuan in capacity and network expansion, as well as new models, to more than double sales to 2.3 million units by 2015. About 30 new models will be introduced during the period, it said.

This year Toyota also released its 2015 China sales goal of between 1.6 and 1.8 million vehicles under a project named Cloud Action, or Yundong in Chinese. The company plans to invest heavily in production of hybrid and electric vehicles in China so new-energy vehicles account for 20 percent of all Toyota sales in the country over the long term.

Honda announced its own mid-term plan just two weeks before the Beijing Auto Show that calls for annual sales to double from 620,000 cars last year to 1.2 million units in 2015 through ramped-up production. More than 10 new and revamped models will be added to the company's local lineup, according to the plan.

Lap of luxury

With a growing economy and a rising middle class, China has become a sweet spot for almost all the world's luxury carmakers.

German automaker Audi, the largest premium carmaker in China by sales, sold nearly 90,000 cars from January to March, up 41 percent from a year earlier.

In the same period BMW's sales in China totaled 80,000 units, a 37 percent rise from a year ago. The record delivery propelled China over the US to become the company's biggest market globally.

Mercedes-Benz moved about 54,000 vehicles in China from January to March, a year-on-year increase of 24 percent.

China also became Bentley's No 1 market worldwide after its sales in the nation surged 85 percent in the first quarter to 578 units.

Italian super car maker Lamborghini found China its top market as well after sales jumped 70 percent to 342 units last year, about one-fifth of its global total.

According to LMC Automotive, luxury vehicles sales in the country are expected to increase to 1.1 million this year, up from some 950,000 units in 2011.