China has overtaken Japan to become the world’s second largest car market after the US following the jump in car sales in the region, which grew by 37%. China’s has been experiencing record growth over the past decade, which saw many foreign carmakers scrambling to establish their respective labels locally. Most of the sales are attributed to the rising growth of China’s urban middle class and the introduction of numerous new models.

America’s own General Motors and Ford have seen their revenues increase significantly because of strong demand from China. Unfortunately for GM and Ford, it’s a doubled edged sword. Chinese manufacturers are keen to export their own vehicles overseas, with the first stop being the US. This week’s Detroit Auto Show saw China's Changfeng Motor Co. display several concepts and its Chairman express the company’s intent to sell vehicles stateside.

Total sales for China, including trucks and buses, rose 25.1 percent to 7.2 million units last year. Japan’s total vehicle sales last year came to 5.7 million units, down on its 2005 levels. Analysts predict that China may even overtake the US as the number one car market by as early as 2015.