As automobile consumption soars, China's auto market will see fierce competition among both domestic and foreign brands in the next few years, said a latest ACNeilsen report.

The fierce competition primarily lies between some traditional auto giants, who have been losing some of their market shares in China in the past two years, said the report by the world most authoritative market research company.

According to ACNeilsen's report based on surveys in Beijing, Shanghai and Guangzhou, known as China's three commercial hubs from north to south, the market share of Volkswagen suffered the sharpest decline.

The market share of the German brand has dropped from 35 percent in 2004 to 23 percent in the three cities.

The report said the market share of Shanghai General Motors increased by one percentage point to 7 percent during the past two years.

ACNeilsen said the largest winners in China's auto market are Japanese cars, because they are designed and developed closely catering to market needs and their marketing strategies are also successful.

From 2004 to this year, the market share of Toyota in the three cities rose from 1 percent to 7 percent. Honda also managed to seized 6 percent of the market, but its market share was less than 1 percent in 2004.

Chinese home-made cars are also acquiring larger market shares in China, said the report.

In Beijing, Shanghai and Guangzhou, China-made Chery cars accounted for 5 percent in the auto market.

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