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China Eyeing Ways to Better Target Resources for EV Production
- Electric carmakers in country have mushroomed in recent years
- Regulator is pushing for closure of redundant EV factories
Photographer: Gilles Sabrie/Bloomberg
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China is drafting measures to rein in overcapacity in the electric-vehicle sector and channel resources in a more targeted way to a number of key production hubs throughout the country, according to people familiar with the matter.
Regulators are considering setting a minimum production capacity utilization rate for the EV sector, and provinces that aren’t meeting it won’t be allowed to greenlight new projects until surplus capacity comes online, the people said, asking not to be identified because the details are private.