Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

China Is Seeking Solutions To EV Overcapacity

- Advertisement -

China’s shift gears on EV expansion, aiming to dial back overcapacity and ease global trade tensions, marks a key move to sustain its automotive leadership without compromising innovation.

China has recognized that its aggressive push into electric vehicles (EVs) may have been excessive. The nation’s vice minister of industry and information technology announced a commitment to curtail the increasing overcapacity of EV manufacturers. The government is prepared to implement “forceful measures” to curb unnecessary initiatives, aiming to alleviate the ongoing domestic price competition and escalating international trade frictions. This initiative is seen as a positive move.

The government’s enthusiastic endorsement of electric vehicles has positioned local frontrunners like BYD and Geely Automobile as significant players in the global automotive sector, establishing China as the leading auto exporter worldwide. However, the rapid expansion has led numerous financially troubled provinces to aspire to become manufacturing powerhouses akin to Anhui, which hosts Nio’s $10 billion production facilities. According to Automobility consultancy, the industry’s surplus capacity might range from 5 to 10 million vehicles annually. This overproduction prompted the European Commission to initiate an inquiry into the influx of low-priced Chinese EV imports last year.

- Advertisement -

The scenario surrounding government generosity and protectionism has laid the groundwork for exploitation. A vast number of enterprises have been established, all producing low-cost, low-tech electric vehicles (EVs) that lack consumer appeal. A significant portion of these EVs were sold to disproportionately large municipal bus and taxi fleets, which were frequently underutilized.

This situation has led to an inflated industry. Specifically, in the year 2014, over 80,000 companies in China registered to join the EV market, a figure that represents more than a twofold increase in the number of new entrants compared to the year before. This burgeoning strategic emerging industry has become a classic example of inefficiency characterized by waste, corruption, excess capacity, fierce price competition, and diminished profitability.

Addressing this overcapacity without adversely affecting the EV sector, which is considered a beacon of technological innovation and manufacturing excellence in China’s otherwise bleak economic landscape, presents a significant challenge. Nevertheless, the admission of this issue marks an important initial step towards resolution.

- Advertisement -

Most Popular Articles

Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

AI Startup Funding Drops 10% YoY In 2023

0
With total investment falling by 10%, 2023 recorded AI startup backing of $42.5 billion, a decline after hitting the peak in 2021 as per...

Electric 2-Wheelers May Cost Less Than ICE Models in 4-5 Years: Report

0
In a scenario where a subsidy of ₹15,000 per kWh is provided, it is anticipated that the upfront cost parity for short- and mid-range...

Thoughtworks And AWS Unveil SDV Pulse For Industry Megatrend Navigation

0
Global technology consultancy and Amazon Web Services have released their first annual report, designed to assist automakers in quickly maximizing the potential of software-defined...

Buzz

LeePra Chooses Delvitech’s 3D AI AOI System

0
Eyeing efficient quality monitoring, LeePra Technologies has partnered with Delvitech to include advanced AI solutions in its manufacturing units. Last week, EMS provider LeePra Technologies...

Bharat Electronics Secures Export Order Worth $2.3 Billion For Fy25

0
BEL receives a $2.3 billion export order for TR modules, boosting India's self-reliance and export potential in defence manufacturing. On Friday, Bharat Electronics Limited (BEL)...

Systrome Technologies Opens Electronics Manufacturing Facility in Thiruvananthapuram

0
To leverage quality telecom equipment production and local employment, Systrome Technologies recently inaugurated a new factory in the state capital of Kerala. A new manufacturing...

Important Sectors

LeePra Chooses Delvitech’s 3D AI AOI System

0
Eyeing efficient quality monitoring, LeePra Technologies has partnered with Delvitech to include advanced AI solutions in its manufacturing units. Last week, EMS provider LeePra Technologies...

Ultimate Luxury On Wheels: India’s Top Luxury Hybrid Vehicles

0
As the automotive world shifts towards electric vehicles (EVs), many still cherish the classic internal combustion engine (ICE). However, a discerning segment of drivers...

Bharat Electronics Secures Export Order Worth $2.3 Billion For Fy25

0
BEL receives a $2.3 billion export order for TR modules, boosting India's self-reliance and export potential in defence manufacturing. On Friday, Bharat Electronics Limited (BEL)...

Systrome Technologies Opens Electronics Manufacturing Facility in Thiruvananthapuram

0
To leverage quality telecom equipment production and local employment, Systrome Technologies recently inaugurated a new factory in the state capital of Kerala. A new manufacturing...

Hybrids Struggle For Incentives In Uttar Pradesh; Only FAME II-Certified Vehicles Eligible

0
Senior industry executives noted that Uttar Pradesh is looking to align hybrid and electric vehicle (EV) incentives with the central government's FAME II guidelines....

Manufacturing

LeePra Chooses Delvitech’s 3D AI AOI System

0
Eyeing efficient quality monitoring, LeePra Technologies has partnered with Delvitech to include advanced AI solutions in its manufacturing units. Last week, EMS provider LeePra Technologies...

India, Russia Partners To Boost India’s Defence Capabilities

0
Backed by Russia, HAL aims to produce and export Sukhoi Su-30 fighter jets in Nashik to enhance India's aerospace prowess and export potential. India's state-owned...

Zapp And Bounce Infinity Partner On Scooter Production at Bhiwadi Plant

0
The partnership will facilitate the manufacturing and distribution of Zapp's i300 electric urban motorcycles across India. Zapp Electric Vehicles Group Limited has unveiled a strategic...

Empowering Innovation: The Role of MSMEs in India’s Defence Sector

0
If large industries are the “face” of the Indian economy as they provide the most visible aspect, then the MSMEs are surely the “firm...

Quality Control With AI-Driven Optical Inspection

0
This collaboration combines optical inspection technology with high-performance Edge AI hardware, significantly improving printed circuit board assembly efficiency, reducing waste, and enhancing overall process...