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"But, for the most part, prices are negotiated well in advance so many will be incurring a significant blow to their profitability," Mond said.

"China has been rolling out policies for capital market reforms since October, aiming to facilitate the move of funds from parties with excess capital to parties needing funds－the core function of securities firms," said Ma Kunpeng, an industry analyst with mainland-listed SWS Securities.

"By 2020, the market scale of the country's intelligent connected vehicles is expected to exceed 100 billion yuan ( billion)," he added.

"By building industry clusters, provinces and municipalities along the belt can boost their competitiveness, which will optimize the industrial structure and help move industries in the regions from 'mid to low-end' to 'mid to high-end' markets in the long term," said Wu Qi, from the commercial bank research center at Hengfeng Bank Research Institute.

"China has tried its best to practice restraint. It has been asking through diplomatic channels for the Indian troops to withdraw. But India doesn't seem to understand," Lan said, adding that there are "various possibilities" if India keeps ignoring China's diplomatic efforts.