From: GoChinaAuto

Auto production in China this year reaches 10 million units weekly. (United States and Japan joined the 10 million club) and can hit 13 million by the end of the year compared to last year 9.35 million. But even by the huge number, MIIT said China Auto industry not overheated.
For such a large population, the total production of cars in China actually is not very high, according to Mr. Zhang Xiangmu, Director of Industrial Engineering Division of the equipment. "In terms of total vehicle production and sales in China is not too much compared to the United States, Europe and Japan.
He added that sales growth this year may be combined with a lower tax on the purchase of vehicles. Government measures, incentives to promote sales of cars in rural areas also play an important role.
Before this year, China began reducing sales tax as 5% for cars with displacement below 1.6 liter. This policy, set to expire at the end of December this year.
China auto sales grew 34.24% to 9.66 million units in the first nine months of the year, and sales in 2009 may be up to 12.6 million. China overtaking the United States to the largest auto market in the world.