Massive Overcapacity Threatens to Prolong China’s Car Price War

China’s long-running auto price war is overshadowing a deeper problem for the nation’s car industry: persistent overcapacity. Despite a slight uptick in recent years, more than half of production capacity lay idle in 2024.

In an industry capable of making 55.5 million vehicles annually, overall capacity utilization last year was just 49.5%, data compiled by Shanghai-based Gasgoo Automotive Research Institute show.