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Apart from road and air links, a high-speed railway is also under construction to boost connections between the Chinese mainland and Hong Kong.

Another major driver behind China's pole position is its advantages in battery cell production, according to German consulting firm Roland Berger, which conducted the study in partnership with German automotive research institute Forschungsgesellschaft Kraftfahrwesen Aachen.

Another major trend Tardif has noticed in China is that original equipment manufacturing suppliers are designing cars on behalf of one fleet manager.

Another factor is that three of China's internet giants - Baidu Inc, Alibaba Group Holding and Tencent Holdings, or BAT - are building a digital ecosystem with benefits beyond them. One in five top Chinese startups was founded by BAT employees or former BAT employees, according to the report.

Another car association in the country, the China Passenger Car Association, has scaled down its estimate of vehicle sales this year and predicted a fall of 8 percent from 2019.