BEIJING (Reuters) – Chinese auto factories’ capacity is not growing fast and idled capacity is being closed instead, a senior official at the China Association of Automobile Manufacturers (CAAM) said on Wednesday.
The capacity utilization rate at China’s auto factories was estimated at over 70% in 2023, according to Chen Shihua, deputy secretary-general of the CAAM, and the association expects the pace to pick up further.
In similar remarks on Tuesday, Cui Dongshu, secretary general of the China Passenger Car Association (CPCA) said that “China’s new energy vehicle sector has yet to reach severe overcapacity levels,” in response to U.S. Treasury Secretary Janet Yellen talking up Chinese overcapacity in EVs during her latest China trip.
(Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Editing by Kim Coghill)
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