Automotive analysts estimate China needs "national champions" to speed consolidation of what is currently an extremely fragmented vehicle industry.

There are currently around 100 Chinese OEMs, although that bewildering plethora of companies appears not to have translated into the supplier landscape, with the traditional overseas giants continuing to maintain their lion's share of business.

"Domestic companies, I think there will be a softly softly approach to reform," said Intelligence Automotive Asia managing director, Ashvin Chotai at the recent Global Automotive Forum in the Central Chinese city of Chongqing.

"Provincial interest in joint venture structures will mean the industry will remain fragmented. I think the likes of Delphi, Bosch, Continental, will continue to dominate the market. Foreign companies are quite happy with the situation - status quo is probably the best way to go.

"If you compare with how Japanese and Korean industries developed, one of the things you notice is there were very few companies. In China's case, there are too many. One thing which could help faster progress would be some national champions.

"You have provincial champions, but no-one encroaches on anyone else's territory. Two steps forward and one step back - no company has build up a sustainable model for development."

Chotai estimates vehicle production in China to reach 31m by 2020, although export targets of 3m will be "quite challenging."

Of equal difficulty will be meeting fuel consumption targets of 5L/100km, while growth is expected to be more in the range of 5% rather than 6.5%.