The popular SAIC-GM-Wuling Hongguang was among the 15 nominees but failed to win an award despite its great success in the market.

The MPV sold 530,000 units in 2013, a 67 percent surge from 2012, topping the list of China's best-selling passenger vehicles.

"The model is a laudable effort by SGMW for China's low-income groups," said jury member Xu Min in an interview with Auto Business Review.

"We would like to encourage its effort, but the product is easily eclipsed by vehicles at higher levels," said Xu, who is head of the Institute of Automotive Engineering and Research at Shanghai Jiaotong University.

Other award winners

Xu added that China's auto industry should explore a road of innovation now that local brands Great Wall, Geely and BYD are forging ahead rapidly.

"Local brands had nothing 10 years ago but now account for one-third of China's passenger market," said Xu.

National car?

But as growth in the auto market slows, he said domestic automakers should find out what Chinese people need and develop a national car instead of competing in expertise with foreign brands.

"Like the SUV in the US, the hatchbacks in Europe and the K-car in Japan, China as the largest auto market in the world deserves a national car."

He also called for government support to Chinese automakers, which he urged to establish an industrial alliance for the task.

Jury member Xu Changming, a senior economist at the State Information Center, said he is optimistic about auto exports and sales of China-made vehicles, saying the industry will have rapid growth for another decade.

But he added that license and parking fees in big cities such as Beijing and Shanghai pose grave challenges to low-end Chinese brands.

While suggesting they move westward, he said they should also focus on quality to seize a larger share of the market.

US auto analyst Gregory Anderson, a jury member who has lived in China for 24 years, said it is time for China's auto industry to consider how to increase the market share of Chinese brands.

"If the goal was simply to have the world's largest market for automobiles, then China can say the job is finished," said Anderson.

"But I bet no one in here is willing to say it is finished now that 70 percent of the sedans sold in China are foreign brands."