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Analysts said the three, which label themselves as premium brands, are winning over buyers from traditional ones like BMW and Audi, whose products are mainly gasoline vehicles.

Analysts hold there is room for further tax reductions through measures such as lowering corporate income tax and expanding the scope of expense reductions for enterprises. Currently, China has three brackets for value-added taxes at the ratios of 17 percent, 11 percent and 6 percent respectively. The country can reduce the three brackets into two in the future, analysts suggest.

And some of its policies have ignored the interests of many groups, who were reluctant to vote for the DPP's candidates in the local elections this time.

Andrew Shawber. (LinkedIn Photo)

Analysts expect that China may continue to increase holdings of US treasury bonds in the coming months and see moderate growth in its foreign exchange reserves given its trade surplus with Washington and eased capital outflow pressure.