China must make a better offer to foreign investors if it hopes to build its car industry, European officials say. Representatives of the European Union and overseas car makers yesterday demanded Chinese authorities lower tariffs and loosen investment restrictions. Ambassador Endymion Wilkinson, head of the European Commission delegation in China, said: 'You won't get technology transfers unless you get better terms for investors in this market. 'We hope the Chinese government will make a better offer on automobile tariffs than it has so far, and a better offer on quotas and elimination of non-tariff barriers.' China maintains average 100 per cent tariffs on car imports. The Ministry of Foreign Trade and Economic Co-operation cut duties on selected car parts between 20 and 80 per cent on April 1 in a bid to gain entry to the World Trade Organisation. Mr Wilkinson described China's economic reform since 1979 as outstanding. In a speech to a Sino-EU motor forum in Beijing, Mr Wilkinson condemned 'unnecessary obstacles which persist for those who want to do business with China'. The industry estimates European manufacturers have invested US$3 billion in China's car sector in the past 15 years. Volkswagen-financed companies account for 62 per cent of China's car production, with other joint ventures drawing investment from Peugeot, Citroen, Daimler-Benz and other European car-makers. European Automobile Manufacturers' Association secretary general Camille Blum said: 'We came here to develop the industry. 'On one side, you have to find partners - and the number of partners is limited - and you must adapt yourself to the plans of the Chinese authorities. 'For the time being, there are no real clear indications of what will go on. 'The plans they have today, they can change.' China's car sector operated at less than 40 per cent capacity last year, with total production of 320,000 vehicles. Beijing's State Planning Commission predicted yesterday that domestic demand for cars would soar to 4.4 million vehicles a year by 2010. Asiatique Europeenne de Commerce chairman Andre Chieng said: 'Nobody doubts China will be a very big market for cars in 10 or 20 years. 'But, what will be the situation in the next five years? 'It is very difficult to assess it.' He said Chinese authorities had subjected motorists to heavy luxury taxes and arbitrary regulations to discourage the use of cars because of the lack of infrastructure. This included February's introduction of a rotating road ban for Beijing drivers.