Officials in China have suggested the country should end preferential policies for automotive companies in order to curb over-capacity.

Booming auto sales in China have led to an over-extended annual production capacity in an industry which is expected to supply over 31 million units by 2015.

Sales of cars jumped 55 percent in August.

But officials are now concerned the serious overproduction capacity could lead to negative market competitiveness, a loss in enterprise efficiency, factory stoppages and other problems.

Statistics from government sources have shown production capacity will far outstrip market demand between now and 2015.