Beijing: Even in a country with a billion-plus people, there are only so many cars that can be sold.
China, the world’s largest automotive market, is starting to feel a serious case of a capacity overdose.
The annual installed vehicle production capacity is estimated at 35 million-plus and some manufacturer or the other keeps adding more.
It was all fine with the market growing in the high double-digits, but those days of turbocharged increases are now seen only in the rear-view mirror.
“That’s why Chinese manufacturers have to seek out new markets abroad and thus put our capacity utilisation to better use,” a senior executive overseeing international operations at Haval, the subsidiary of Great Wall Motors Co said.