These consumers don't really care about the prices.

When you loosen that up, and people can drive small cars everywhere, then people will buy.

It's risky for local companies to start at the high end. Their brands aren't strong enough.

Volkswagen's China sales are expected to recover slightly starting from the second half of this year or 2007 with introductions of these new products.

Peugeot, which used to be lukewarm in China, is gearing up now. Peugeot may record faster sales growth as its unique exterior designs are becoming more acceptable to Chinese consumers along with rising car penetration rate.

Consumers don't like high prices, ... That's what they notice at the pump and out of their pocketbook.