Chinese car sales and production reportedly exceeded 12 million between January and November.
The Xinhua news agency reports the China Association of Automobile Manufacturers expects car sales and output to top 13 million for the full year.
According to preliminary figures sales reached 1.35 million units in November alone.
The BBC reports China has never produced more than 10 million cars in one year before.
Sales have been boosted by State incentives, such as tax cuts on small cars.
Xinhua said the country's largest carmaker, Shanghai Automotive Industry, sold 2.44 million cars in the year to the end of November, a rise of more than 50% compared with the same period a year earlier.
Previously, only the United States and Japan had produced 10 million cars in a single year.
Domestic Chinese car sales overtook those in the US for the first time in December of last year.
Xinhua also reported the government said it would continue to stimulate the economy after its annual economic policy meeting on Monday.
Leading Chinese shares rose slightly afterwards. The BBC reports the Shanghai Composite index rose by 15 points, or 0.5%, to 3,331.9.
