China has said that it expects to become the world's second largest automotive market by 2007 as demand hits six million units, state press reported yesterday.

National Development and Reform Commission secretary general Zhang Xiaoqiang said that total vehicle output for this year is expected to reach four million units, an increase of 20 per cent.

China is the world's fastest growing car market, with output having increased 30.8 per cent to 3.25 million units in 2002, which represents a car production increase of 55 per cent.

There are fears, though, of overproduction, resulting in the market being flooded by unwanted vehicles.

If planned auto production is achieved between 2007 and 2009, total vehicle output will reach 15 million units, far outstripping demand, according to Mr Zhang.