He added that the measures would also help the country come close to the annual sales target of 10 million units set by CAAM last year. In 2008, automobile sales in China increased slightly by 6.7 percent from the previous year, the lowest in the past decade, according to CAAM.

China was considered to be the fastest growing automobile market in the world with sales growth rates of over 20 percent in the last three years. That is something of the past now, said experts.

But China would also be the first to rebound from the industry stagnation and maintain a steady growth rate, they said. GF Securities expects market demand in the country to recover in the second quarter.

"We continue to hold confidence towards the future of the Chinese auto market. In 2009, Mercedes-Benz will bring an increasingly variant brand experience for Chinese customers through a more diversified product line, caring services and rich brand connotations," said Klaus Maier, president and CEO, Mercedes-Benz (China) Ltd.

Dieter Zetsche, chairman, Daimler AG and head of Mercedes-Benz has promised that the German luxury sedan supplier would "definitely increase the investment in this most potential market".

Kenneth Hsu, spokesman for Ford China, said the US auto giant's financial woes in its home country would in no way derail their expansion plans in China. "We will continue to introduce new products and invest more in China with profits from our local operations," Hsu said.

"The financial crisis and slowdown of China's auto industry won't make us reduce production or sales in China. Instead, we are considering to expand our product portfolio here," said Peter Schwarzenbauer, member of the board, Audi AG.

(China Daily February 9, 2009)