China's auto sales and production have put on the brakes in recent months. So where is the sector heading? Will it keep slowing, or get back in gear later this year? Zou Yun reports.

And end to government subsidies.

Rising gas prices.

Restrictions on purchases.

In April and May, these factors slowed China's previously booming auto sales and production. But despite the current lull, many insiders are still bullish on the market's outlook. Auto sales in the first five months of the year grow at a pace of about 4 percent, though the rate of growth was sharply down compared to the double-digit growth in the same period last year. Analysts say the cooling indicates a more sustainable pace of expansion.

Experts say China should explore its own competitive edge instead of imitating American and European carmakers. They say that new developments in green, energy efficient vehicles could be that competitive advantage for China's auto sector, enabling it to join the league of world leading manufacturers.

Chen Qingquan, chairman of World Electric Vehicle Assoc., said, "Other experts suggest more cooperation between Chinese and European carmakers. They say established companies can work with emerging Chinese manufacturers to quicken the pace of development."

Molden says the global auto market landscape is changing rapidly and it is difficult to tell which Chinese carmakers will come out on top.

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