"This market is becoming more like European or American style entry-level premium like Mercedes C-class or BMW-3 series. This kind of entry-level premium is growing very fast," Zhang said.

Demand has been especially high for larger, sport utility vehicles (SUV's). Karsten Engel, who heads BMW's China Group, says the roomy interiors appeal to China's newly rich -- even though some will probably never drive them.

"The ultimate driving machine, you probably experience a lot from the rear seat with your driver, so you need more space, you want more space. You want to have the possibility to work in the car," Engel said.

That's something luxury automaker Bugatti's marketing director Stefan Brungs understands. "This is what the Chinese have learned and perceived as luxury -- to sit in the back and be chauffeured," Brungs said.

Despite the high demand for larger automobiles, environmental issues and fuel consumption concerns are contributing to the heightened interest in green, fuel efficient vehicles.

"Four years ago, when we introduced the concept of the electric car, most of our colleagues in the industry thought that we had lost our minds. Now it doesn't look so stupid, you know?," said Nissan's Asia Vice President Andy Palmer.

But for now, analysts say new hybrid and electric technology is likely to take a back seat in China. Despite higher government taxes on larger gasoline combustion engines, new data show sales of SUV's are up nearly 50 percent from a year ago and likely to double by 2015.