Brand competition will escalate in China's car market since a majority of potential buyers will be attracted to newly launched vehicles. This will have a powerful impact on long-established brands and models, said Philippe Coquelle, director of ACNielsen China Automotive Research.

"The remerging replacement and second car market are signs of the maturing of China's car market. At the same time, car consumers are now equipped with greater knowledge about cars and are getting pickier," Coquelle said.

"Product innovation and cultivating brand loyalty will be a greater-than-ever challenge."

Boosted by brisk sales and manufacturers' cost-cutting efforts, the auto sector in China has regained sales growth this year after tumbles over the past two years.

The sector, including vehicles, spare parts and motorcycles, earned 54.47 billion yuan (US$6.89 billion) in the first three quarters of this year a jump of 48.87 per cent from a year earlier, according to data from the China Association of Automobile Manufacturers.

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