China's output of passenger cars next year is expected to reach 4.6 million, higher than the probable production of 4 million this year, Rao Da, secretary-general of China's Passenger Car Market Information Association, said on the website of the Ministry of Commerce.

The profit in China's passenger car industry this year will probably reach 30 billion yuan (3.75 billion US dollars), he said.

The commercial vehicle output will strike 1.7 million this year, and 1.8 million next year, with most commercial vehicle manufacturers witnessing deficit this year, he said.

Rao expected China to adopt differentiated taxes upon auto consumption so as to limit more-polluted cars, with higher tax rates upon cars with large discharge volumes.

So as to avoid such tax, many will choose to buy cars with large discharge volumes at the end of this year, increasing the auto sales considerably, he said.

He expected China to become world's second largest country of auto production by 2010. In 2006 or 2007, China will become world's largest country of auto sales, with sales volume of 7 million vehicles, he said.

Source: Xinhua