Motor Vehicles and Parts News
- Auto overcapacity gets more serious
Date: 11-Sep-2007 Sources: (Shenzhen Daily)
OVERCAPACITY in China's automobile industry is getting more serious and investment is growing excessively, Xinhua reported Sunday.
China's auto-parts industry was a laggard, however, and unable to compete in the global supply chain due to its small scale, Xinhua said, quoting Zhang Guobao, vice chairman of the National Development & Reform Commission. China, the world's second-largest vehicle market, now has capacity to produce more than 10 million units a year and the overcapacity problem has been accumulating, Zhang said. In 2007, China's vehicle sales and output were expected to surpass 9 million, up a quarter from 2006, domestic media reported Saturday, reaching a goal originally set by the government for 2010. China's vehicle output jumped an average of 26 percent each year from 2001 and 2006, official data showed.
Sponsor Results:
