Auto industry faces uphill challenges: Experts

A leading industry analyst has warned that China's automobile sales could slow considerably within the next two years, choked mainly by the inability of roads and highways to cope with the growing volume of traffic, particularly in the major cities.

Hou Yankun, head of China Equity Research and head of Asia Autos at UBS Securities, said that 2013 will witness the "last wave" of sales surges in China's auto industry.

He estimated total sales to grow by 8.4 percent year-on-year in 2013, with sales of passenger vehicles up by 8.1 percent from 2012.