China's automobile industry is booming on the back of strong domestic demand, but challenges remain due to a spate of governmental and environmental factors, experts warned.

At the ongoing Boao Forum for Asia, held this year from April 8 to April 11 in south China's Hainan Province, industry insiders said that solid market growth might mask a host of problems in the country's auto industry.

Big demand in China has powered the past decade of explosive growth in car sales, but the industry is grappling with a thicket of problems, including environmental woes, traffic congestion, government restrictions on car purchases and odd-even car bans, said Zhu Fushou, General Manager of Dongfeng Motor Corporation.

"It is debatable whether the sector could sustain growth in the midst of these factors," Zhu said.

(Xinhua News Agency April 9, 2014)