Chinese carmakers would like to see the 50% equity cap on foreign ownership in local carmaking joint ventures retained for at least another five years, according to an interview published by Bloomberg.

The Bloomberg news agency spoke to Ye Shengji, deputy secretary general of the China Association of Automobile Manufacturers (CAAM) who said that the cap on passenger-vehicle joint ventures should be maintained for at least another five to eight years to ensure domestic carmakers are ready for full-fledged competition.

However, he also said that equity caps could be lifted on other parts of the automotive industry sooner.

China's restrictions on foreign makers are aimed at ensuring that JVs are focused on China's strategic auto industry priorities – especially technology and expertise transfer.

"While removing the caps is something that can't be stopped, it should happen in a gradual and orderly manner and not all at one go," Ye told Bloomberg.

Bloomberg noted that the policy has been criticised in recent years for shielding state-owned companies from competition and reducing the drive to build their own brands.

Many analysts expect the fragmented Chinese auto industry to undergo considerable restructuring and consolidation – which will raise scale economies and international competitiveness - over the next five years.