Core Viewpoint - The automotive market is experiencing a significant shift in competitive dynamics, with production capacity transitioning from joint ventures to domestic manufacturers, reflecting a structural surplus in capacity and the implementation of "stock optimization" policies across regions [1][3]. Group 1: Capacity Acquisition and Market Dynamics - Many automotive manufacturers in need of new production capacity are acquiring or managing other manufacturers' factories to supplement their production capabilities, a trend that has become widespread this year [2][3]. - Recent acquisitions include Changan Automobile taking over Beijing Hyundai's Chongqing factory, which has been repurposed for Deep Blue Automotive production, and Geely's acquisition of the former SAIC-GM Beisheng factory in Shenyang for its Galaxy brand [2][3]. - The shift in idle capacity has moved from domestic brands to joint ventures, with companies like Dongfeng acquiring production capacity from Nissan and other joint ventures [3][10]. Group 2: Strategic Goals and Production Capacity - Geely and Changan have set ambitious sales targets of 5 million vehicles by 2030, driving their recent capacity expansions [5][6]. - Changan's production capacity is projected to reach 2.25 million units in 2024, with a utilization rate of 84%, while Geely's capacity is 4.23 million units with a lower utilization rate of 45% due to previous restructuring [7][8]. - Geely's Galaxy brand has seen rapid sales growth, surpassing 1 million units in the first ten months of this year, prompting the company to prepare multiple production bases [7][8]. Group 3: Market Share and Competitive Landscape - The market share of domestic brands has surged from 35.7% in 2020 to 68.7% currently, indicating a significant rise in competitiveness against joint ventures [10]. - Several joint venture companies have exited the market, with factories being repurposed for domestic brands, such as the sale of GAC FCA's Guangzhou factory and the closure of multiple Honda and Nissan plants [10][11]. Group 4: Policy and Asset Optimization - The Chinese government is focusing on optimizing existing assets, with policies aimed at revitalizing idle production capacity, particularly in the context of the transition to electric vehicles [12][13]. - Local governments are actively implementing measures to utilize existing automotive production capacity, as seen in various provinces with specific plans for the automotive industry [12][14].