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Total sales of domestically made automobiles are expected to exceed 4.5 million units this year, up from 3.25 million units last year, said Jia Xinguang, an analyst with the China National Automotive Industry Consulting and Development Corp.

"SARS' spread is a windfall for the growth of the domestic auto market this year," Jia told China Business Weekly on Sunday.

The passenger car segment, the biggest growth engine for the overall auto market, will especially benefit from the disease's spread, he added.

Sales of passenger cars manufactured in China will surge to more than 2 million units this year, from 1.12 million units last year, he said.

Jia's forecast is up from 4 million units of total vehicle sales this year, including 1.6 million passenger cars, previously forecast by the China Association of Automobile Manufacturers (CAAM).

Total vehicle sales during the year's first four months increased 38.45 per cent year-on-year, to nearly 1.36 million units, indicate CAAM statistics.

The spread of SARS has triggered a purchasing spree of passenger cars in disease-hit regions, especially Beijing, the world's most-affected city.

More people have bought cars ahead of schedule for fear of being infected with SARS while riding public transport vehicles.

Passenger-cars sales stood at 539,500 units during the period, up 88.24 per cent from a year earlier, statistics indicated.

"However, the benefit of the SARS spread is limited and temporary. New product launches and price cuts by domestic carmakers remain the biggest boost for the whole auto market," Jia said.

Zhu Yiping, a CAAM official, agreed, saying, "Generally speaking, the spread of SARS will have little influence on the whole auto market this year."

Many carmakers in China, especially Sino-foreign joint ventures, are speeding up introduction of new models. They are also cutting prices to attract consumers.

Over the past few months, more than 10 new passenger models were in China - including the Gol and notchback Polo by Shanghai Volkswagen, the Buick Regal by Shanghai General Motors, the Audi A4 by First Automotive Works (FAW) Volkswagen, the new Accord by Guangzhou Honda and the Xsara by Dongfeng Peugeot Citroen.

Shanghai General Motors has announced it will start selling the newly introduced Excelle sedan at the end of July.

Guangzhou Honda also plans to launch the small-sized Fit saloon car in August.

Germany's BMW will begin producing its 3-series sedans during the year's second half at its joint venture with China Brilliance Auto.

Carmakers which have cut prices recently include FAW Volkswagen, Shanghai Volkswagen, Shanghai General Motors, Dongfeng Peugeot Citroen and Nanjing Fiat.

The biggest price cut so far this year has been made by Shanghai Volkswagen, which slashed the price of one of its Passat sedans by 50,000 yuan (US$6,046).

"More manufacturers will cut prices amid mounting market competition during the rest of this year," Jia said.

However, there are also worries about SARS' negative impacts on the auto market if the disease spreads for a long time.

"We would see a growth slowdown in the market if the spread of SARS is not effectively controlled within two months, because auto consumption is closely connected with the nation's overall economic growth," said a spokesperson from Shanghai General Motors.

The Chinese Government and economists have admitted SARS' spread will affect the nation's economic growth this year.

Analysts say SARS has hit hard the taxi and tourism sectors, which, in turn, has affected the auto market.

Many carmakers are aiding China in the fight against SARS.

China Brilliance Auto has announced it will donate 10 million yuan (US$1.21 million) worth of vehicles, anti-SARS materials and cash.

Other donors include Toyota Motor Corp, Volkswagen Group and Guangzhou Honda.

"As responsible corporate citizens in China, we hope to help China fight SARS," Volkswagen (China) Investment Co Ltd announced last week in a statement.