Zhong Guo Qi Che Bao Wang·2025-06-02 22:28Core Viewpoint - The Chinese automotive industry is experiencing rapid expansion, but the issue of unreasonable capacity structure is becoming increasingly prominent, necessitating a redefinition of automotive capacity to optimize resource allocation and improve utilization rates [2][3][4]. Group 1: Capacity Structure Issues - Many companies possess large production capacities, yet their products fail to meet market demands due to quality and technology issues, resulting in low or even ineffective capacity [3][5]. - The automotive supply chain also reflects similar capacity structure problems, with local governments eager to attract manufacturers to boost local GDP and employment, leading to redundant construction and underutilized facilities [3][4]. - Historical context shows that capacity issues in the automotive industry have been recognized since 2006, with various measures proposed to control new vehicle projects and improve investment conditions [3][4]. Group 2: Need for Redefinition - A clear distinction between quality capacity, effective capacity, low-efficiency capacity, and ineffective capacity is essential for formulating precise industrial policies and guiding resources towards high-efficiency capacities [4][10]. - The current definitions and management models for automotive capacity are outdated, given the rapid evolution of the industry, particularly with the rise of electric vehicles and new technologies [4][10]. Group 3: Market Dynamics - Despite claims of overcapacity, the reality is that there is a significant gap in quality capacity, as evidenced by companies like BYD and new entrants like Li Auto and Xpeng, which are expanding production to meet demand [7][9]. - The automotive industry operates under a market economy where some degree of capacity redundancy is normal, influenced by uneven sales and the complexity of production processes [6][10]. Group 4: Policy and Government Role - The Ministry of Industry and Information Technology is promoting actions to support quality management and optimize capacity layout, encouraging resource integration among leading companies while phasing out underperforming enterprises [13]. - Government intervention should focus on setting standards for energy efficiency and environmental impact rather than directly controlling capacity through administrative approvals [11][12]. Group 5: Strategic Opportunities - The current environment presents opportunities for leading companies to acquire and repurpose underutilized capacities, transforming perceived overcapacity into strategic advantages [14][15]. - Exploring overseas markets and establishing local assembly lines can help alleviate domestic overcapacity while facilitating equipment upgrades in China [19].