China's leading carmakers are planning a range of price cuts in a bid to boost domestic demand.

The Chinese car market has hit a plateau after two years of record growth.

China is the fastest growing economy in the world and as a result has a burgeoning middle class with money to spend.

Citing figures from Automotive Resources Asia (ARA), the Financial Times said joint ventures operated by Ford, Honda and Audi had all turned to price cuts.

The slowdown in sales during the second half of 2004 has left leading car dealers with unsold stock.