Vehicle purchases hitting top gear

However, Rao also warned that domestic automakers are still in hot water and may see further declines in market share and exports. "China is the only BRIC nation which does not have supportive policies for homegrown auto brands," he said.

Chinese consumers' preference for foreign or joint venture products, rather than domestic brands, due to quality, safety and branding considerations, has given further sales momentum to foreign automakers.

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On Monday, US automaker General Motors and its joint ventures reported record sales during the first half and June in China.

Its sales in China during the first six months of this year rose by 10.5 percent from the same period in 2013 to 1,731,282 units. GM's China sales in June rose 9.1 percent to 257,798 units.

"GM has experienced resurgent growth and demand for its products across China this year, especially at the higher end of the lineup and in the SUV and MPV segment (the two fastest growing segments in China)," said Matt Tsien, executive vice-president of General Motors and president of GM China.

"We anticipate sales remaining strong through the end of 2014, as more people - particularly outside China's major cities - become first-time vehicle buyers."

EV CHARGING STANDARD DEAL SIGNED

China and Germany signed an agreement on Tuesday to use the same charging standard for electric vehicles, in hopes of accelerating the adoption of the new energy cars in the two countries.

German Chancellor Angela Merkel and Minister of Industry and Information Technology Miao Wei watched as representatives of Germany's Volkswagen, Mercedes-Benz and BMW, BYD Co Ltd, BAIC Group and Changan Automobile Group of China, and joint venture brands Denza and Zinoro all shook hands.