Photo/Zhang Jian (NBD)

March 10 (NBD) -- The Chinese auto market is experiencing a "buying frenzy" after carmakers and the government in Hubei province offered massive subsidies to buyers of both petrol and electric cars.

With subsidies ranging from 4,000 to 90,000 yuan, Citroën C6 can be bought at only 120,000 yuan.

Witnesses say some out-of-towners are flocking to Hubei province overnight, but only to find that 4S stores have stopped taking orders. The local factory is working overtime to fill the capacity, and some 4S stores have even fenced off the displays to prevent buyers from taking the cars away forcibly.

"People are buying cars as if they're buying cabbage. We haven't seen such a scene for a long time," said one salesperson of a Dongfeng dealership when reached by NBD. But don't come as there is no car available anymore, added the salesperson.

The enthusiasm of the Hubei market is further indicated by the data from a meeting held in Wuhan's Economic and Technological Development Zone on March 6.

It was revealed that the daily order volume of DONGFENG PEUGEOT CITROEN increased by 9840% following the promotion, and Dongfeng Honda (subsidized version) achieved 1,469 orders in five days. In just one weekend, 275 orders were placed in Dongfeng Honda's 4S stores in Hubei, an increase of 186.5% from the average daily order in February.

The huge discounts also prompted other carmakers and provinces to follow suit, with at least 30 brands offering discounts of up to 100,000 yuan, noticed NBD.

The competition in the automotive industry is heating up, with car makers competing fiercely for market share. One insider from a luxury car brand said they were feeling the pressure, saying "the industry is in a state of battling as soon as the year began and we are trying everything possible to get a headstart."