China's carmakers muscle competitors

TAIZHOU, China: With sales soaring for cars of every size and shape, China will pass Japan as the second-largest vehicle market this year, after the United States. But the Chinese market still may not be big enough to support all the homegrown manufacturers as well as the foreign automakers trying to do business here.

China has more car brands now than the United States, as companies like Fiat and PSA Peugeot Citroën compete with General Motors, Ford, DaimlerChrysler, Toyota and Nissan in joint ventures with Chinese companies.

But while car sales in China have climbed this year, automakers have increased their output even faster, causing fierce competition and a slow erosion in prices - even for top- selling models like the Buick Excelle and Hyundai Elantra.

As executives of the world's multinational automakers fly to Beijing for the auto show that will open there Sunday, they are particularly watching the growing competitiveness of Chinese manufacturers, who have been steadily gaining market share over the last several years and are expected to continue doing so.