The Chinese authorities are becoming increasingly concerned over the rate of production at car factories around the country, warning that production will soon outstrip demand.

The government is eager to tackle the problem and is looking to curb growth in the production of vehicles, with economic planners calling for limits on the amount automakers can produce.

There are fears that the increase in production will soon lead to a glut in the market, causing prices to fall dramatically and potentially damaging what is considered one of the most promising emerging markets in the world.

Jia Xinguang, chief analyst with the monthly Chinese trade publication Auto Magazine, told the Wall Street Journal: "Local governments want to attract car-related investments and offer cheap land to investors, even though there isn't real market demand for the products."

As a result, production levels have accelerated substantially across China in recent times, but the comparative lack of demand could see the Chinese authorities move to prevent further growth in an effort to preserve this embryonic market.

Ÿ Adfero Ltd