China's car sales and production are likely to reach about 25 million units this year, flat or slightly down from last year, said an official with the Ministry of Industry and Information Technology.

China's auto industry showed its first negative growth after 28 years of positive trajectory, entering into a period of market and structural adjustment, said Miao Wei, Minister of Industry and Information Technology at a press conference on Monday.

But since the second half of last year, the decrease in auto production and sales has been narrowing and market confidence has picked up after proper adjustment and pro-consumption policies took effect, said Miao.

Miao said the country has a complete auto industrial system and the largest auto market. But at the same time, the industry still faces mounting downward pressure due to a lack of research input, key technology and innovation.

Also, there are short-term impacts from subsidy cuts in new energy vehicles and stricter emission standards for traditional cars, Miao added.

China will continue to promote high-quality development in the auto sector, stimulate market vitality, and equally treat all Chinese and foreign-funded companies, said Miao.

Building an international business environment

U.S. electric automaker Tesla factory is the first wholly foreign-invested new energy car factory in China, which shows China's resolve to build an international business environment, said Miao.

The Shanghai Gigafactory began construction in January last year, and the factory delivered its Model 3 sedans to the public in December.

In the short term, domestic new energy automakers will face certain challenges, but it provides them an opportunity to enhance innovation and speed up upgrading, thus achieving complementary advantages and win-win development, Miao added.