A Chinese official yesterday suggested that the authorities should suspend approval of new auto joint ventures in the country so as to support the development of domestic brands.

"It is not necessary to approve too many auto joint ventures which always focus on fast market expansion in the country," Cui Dongshu, deputy secretary-general of the National Passenger Car Association, told the Global Times yesterday.

Cui noted that the competition at the domestic passenger car market is already fierce and "domestic brands have little room to expand."

The sales of domestic passenger car brands accounted for only 31.1 percent of all the country's market share as of November this year, two percentage points lower than the same period of last year, according to data from the association.

Domestic brands reported a decline in their net profits in the third quarter this year. Jianghuai Automobile saw its net profit plunged 87 percent year-on-year in the third quarter, and Foton reported a slide of 44.16 percent.

But analysts said halting approvals for new auto joint ventures is not a realistic move.

"Actually, nearly all well-known and popular foreign brands have already entered into the Chinese market," said Chen Guangzu, committee member of the China auto industry consultancy commission.

Chen suggested Chinese automakers should focus on brand building and after-sales services, and try their best to expand into overseas markets, rather than limiting foreign brands' entry into China.

Zhang Junyi, a project manager at Roland Berger Strategy Consultants, said that halting new auto joint venture approvals could not be achieved since the country is already a member of the World Trade Organization.