Global carmakers are gearing up for aggressive expansion in the mainland, despite tougher government policies on car loans and fears of excess capacity.
Speaking at a Beijing motor show yesterday, Mazda China strategy chief Kiyoshi Ozaki said the firm would build a factory for eight new models to fulfil its aim of tripling sales to 300,000 by the end of the decade.
The Japanese carmaker expects to lift sales in the mainland this year by 38 per cent to 110,000.
'We are clearly engaged in expanding our operations in China and are involved in numerous discussions,' Mazda executive vice-president John Parker said.
Other carmakers, including Ford Motor, General Motors, Nissan Motor and Peugeot Citroen, have also announced their intention to increase their market share in China, the world's third-largest car market.
However, they will be fighting a battle against increasingly competitive domestic companies and slowing car sales as consumers anticipate further price cuts and the lifting of car import restrictions next year.
Merrill Lynch analyst Grace Mak expected the mainland passenger car industry's growth to slow to 41 per cent next year from 53 per cent this year.