Domestic automakers join hands to seek breakthrough (2)

Analysts said the new model may offer an effective breakthrough for Chinese automakers if successful, although there will be plenty of challenges and obstacles ahead due to varied regional interests.

For years, the government has been vigorously pushing for the restructuring of the fragmented auto market, which has been crowded with market players but few big-name brands.

As early as 2009, the State Council issued guidelines to streamline the auto industry. China is reportedly mulling new policies to encourage mergers and reorganization in the sector.

Statistics from the China Association of Automobile Manufacturers showed that in the first three quarters, domestic passenger cars accounted for 40.6 percent of total sales, down 1.7 percentage points from the same period last year.