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Challenges still remain in payment upgrades as it involves negotiation with local governments that usually control local transport systems, industry insiders said.

Changan has sold more than 270,000 vehicles since it went international in 1991, establishing 255 points of sale and service in more than 41 countries, with manufacturing plants in Russia, Vietnam and Egypt.

Charles Jacobs, chairman of Linklaters, said Chinese investors need to prepare for foreign governments' growing concerns in a number of sectors.

Cathy Huang, associate research director of Services and Security at IDC, agreed. She said: "If your company doesn't have a strong policy, that's going to be a potential problem."

Challenges ahead However, the prospect is not as good as it looks. Both companies are facing the same problem of how to make money, as traditional dealerships have increasingly thinner profits from selling cars. "We want to try the business model first. If the model works, we will eventually make money from automakers," said Chen Ran, general manager of Gome's auto business division. For a car market to be a success, effective coordination is needed among car makers, 4S stores, insurance companies and accessory producers to realize a one-stop shopping experience like that in traditional supermarkets, said Chen Hao, president of Jiangsu-based dealership company Xiezhong Auto. "In the future, car sellers should provide a more and more personalized service targeting a small niche market. Thus, car markets face the tough test of adapting to changing demand," he said. The newcomers will also be confronted with other segments of the car sales market, including e-commerce giants, used car dealers and group buying service providers. Suning's Liu said price might not be the advantage of car markets, but the company would ensure price transparency, a full range of products and reliable quality. "Our greatest strength is breaking the single-brand bottleneck of 4S shops and giving customers a new buying experience," Liu said.