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Analysts agree that tax reduction has played a significant role in further boosting market vitality and driving industrial development.

An overwhelming majority of China CEOs, 91 percent, view "technological disruption" as more of an opportunity than a threat, an increase from 75 percent in 2017.

Analysts said the stronger performance of the service sector adds to the evidence that the Chinese economy is stabilizing and that the sector, which already accounts for more than half of China's GDP, will continue as a key growth driver in 2020.

Analysts say their arrivals will lure some potential customers away from startups including Tesla because the majority of Chinese customers are more inclined to choose long-established brands.

Analysts said this is probably because most of the models in the segment are high-end and many carmakers have spent more time on sedans than on SUVs which became a hit only several years ago.