This year's Shanghai Auto Show is an important event for global car makers who are increasingly looking to China. Our reporter discovers how some of these companies plan to tap into the world's largest auto market.

Zou said, 58 cars for every 1000 Chinese citizens that's the number of cars owned here now. Each figure tells a story, and the story told by this figure is probably the vast room and potential business opportunities for the further growth of China's auto sector. Or in other words, it's still all about market.

Experts say the phasing out of preferential purchasing policies, introduction of vehicle purchase restrictions, the cost of oil rising, and the impact left by Japan earthquake will make selling cars in China more challenging. But even so, the majority of Chinese consumers'desire for buying cars will not be dampened.

Xiong Chuanlin, Dep. Secretary Gen. of China Assoc. of Auto Manufacturers, said, "Chinese have a long-cherished dream of owning a car. When Chinese people get wealthier, many of them usually spend big in two ways: buying a house, or purchasing a car. But with housing prices skyrocketing; buying a car has become the ultimate option for a large number of people to improve the quality of their lives. "

Xiong is not alone in in his optimism in China's auto sector. Many believe that the Chinese market is still far from overcapacity, and see it as the most lucrative market in the world. Some automakers are even planning to localize their production in China.

Ralf Speth, CEO of Jaguar Land Rover, said, But experts have a word of caution. They say that China's auto sector is not likely to repeat the explosive growth seen in past years. Instead, they say, 10 to 15 percent growth target for the industry in 2011 is more realistic.

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