China reported 90 per cent increase in care sales in August, given the various measures announced under the government stimulus package. The country will soon beat the US as the world's largest auto market, if car market continues to grow at this pace. Meanwhile, China's biggest privately owned carmaker, Geely Automobile Holdings Ltd., reported 100 per cent profit due to high demand in the car segment.

The China Association of Automobile Manufacturers said that total vehicle sales, including sport-utility vehicles and multipurpose vehicles, stood at 858,300, thanks to the 4 trillion yuan ($586 billion) stimulus plan by the Chinese government. The government hopes that demand may touch the 12-million mark in the coming times.

The country's overall vehicle sales, including trucks and buses, stood at 1.14 million, reporting an increase of 82 percent. Chen Bin, Chief Director of the Development and Reform Commission, expects the sales to rise 28 per cent, cautioning carmakers against oversupply.

However, Zhang Xin, an analyst at Guotai Junan Securities Co. in Beijing said: "Sales growth is sure to continue in the coming months due to the incentives. Everybody is worried about next year."