After eight months of sluggish growth in China's automotive industry, expectations for a major turnaround are growing - but a look at economic conditions in China does not make it clear why.

With little good news on the economic front, the optimism can only be attributed to a confidence in government efforts to manage the economy and the industry.

From stimulating demand to promoting a technological transformation, Beijing is indeed drawing extensively from its policy toolbox to stimulate and shape China's automotive industry. What impact is government having on China's automotive industry?