China is forecast to make 2.6 million sedan cars this year, about 26 percent more than last year and causing a possible oversupply to exacerbate storage problems, says a report issued by the Ministry of Commerce.

The report said both the demand and supply of cars in China would continue to climb this year, but the cut-down on tariffs would stimulate consumption for imported cars, which was likely to reduce the sales of similar China-made cars.

Last year, the total supply of sedan cars amounted to over 2.17million, with sales only reaching over 1.97 million. Some 197,400 new cars were left in warehouses.

Source: Xinhua