"The serious eurozone debt crisis was the main reason, as the European automakers all transferred their focus to China."

Luo Lei, deputy secretary-general of the China Automobile Dealers Association, agreed with Wang.

"Due to their high expectations of the country, the European automakers brought too many vehicles to the Chinese market," said Luo. "Most of them targeted a 40 to 50 percent growth in the China market.

"The price war which squeezed dealers' profit margins, as well as the high inventory, made them realize the severity of the situation and they slowed their crazy imports in the fourth quarter," added Luo.

According to Wang, in September, most of the automakers had a high inventory of imported vehicles, almost 3.5 times their monthly sales.

"More than half of the dealers trading imported vehicles faced losses in 2012, due to shrinking profit margins and high operating costs. And the high inventory will continue to pressure them in the first two months this year," said Wang, who predicted a merger and acquisition trend among struggling automobile dealers this year.

Though facing many uncertainties and challenges, Wang said that he expects China's imported vehicle sector to grow by 10 percent this year.

He attributed his confidence to the 27 new models, mainly sport utility vehicles and compacts, that have become popular with Chinese consumers recently.

Contact the writer at lifangfang@chinadaily.com.cn

Vehicle sales overtake Europe in 2012

China to further promote energy-efficient vehicles

Vehicle imports see sharp decline in Nov