Chinese vehicle maker Chongqing Changan is taking a cautious view on prospects for car sales in 2012 according to remarks made by its president Zhang Baolin.

He said that he expects the vehicle market in 2012 to rise by just 3-5%.

“China’s car market next year is likely to remain in a slow growing trend overall,” Zhang said.

Zhang was speaking on the sidelines of a press conference at which it was announced that its JV with PSA would receive additional investment.

China’s vehicle market has slowed in recent months as government incentives for the purchase of some models have been removed and amid a tightening of monetary policy as Beijing has stepped up efforts to prevent the economy overheating.