China's thriving economy is putting more money in the pockets of Chinese citizens, while taking them off the bicycle seat and behind the car wheel. The country's sustainable economic rise has created wealth, and where there's wealth there's a taste for the good life, particularly luxury automobiles. DaimlerChrysler has partnered with Beijing Automotive Industry Holding Co. in a $1.11 billion deal to produce the Mercedes C Class and E Class sedans in China. Along with the luxury sedan, the company plans on producing a higher end truck in what has become the world's largest growing truck market. The race by automakers to cash in on the nouveaux riche's disposable income may stall future sales, though. According to a report by KPMG, China may face an oversaturated auto market within the next two years-dismal news for such companies as Toyota Motor Corp., General Motors, Ford Motor Co., Volkswagen AG, Bayerisch Motoren Werke AG, and now DaimlerChrysler AG, all of whom already have a presence in China. With a growing inventory of autos on the market, price wars are undoubtedly down the road. Industry executives predict that automobile prices will drop at a rate of 6 percent per year. Furthermore, a glut in the auto market may prompt the Chinese government to implement new restrictions such as higher tariffs on imported parts.