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At the beginning of the year, the National Development and Reform Commission clearly stated that in 2017, the supply-side reform and “three to one, one reduction and one supplement†will be further promoted. Especially in terms of capacity reduction, in addition to coal steel, the backward production capacity of other industries will also enter the capacity-removal list. Experts believe that the automotive industry is most likely to be included in the new capacity.
Some experts pointed out that in the first 11 months of 2016, China's automobile production and sales reached nearly 25 million vehicles, an increase of more than 14%. At the same time, the automotive industry already has more than 6 million units under construction capacity, and the signs of overcapacity have already emerged.
In practice, the pace of capacity reduction in the automotive industry has begun. In the first half of 2016, 13 automobile companies including Shuanghuan and Qingling were cancelled by the Ministry of Industry and Information Technology. This means that the automobile industry has already started the process of de-capacity, and some enterprises that are not well-managed and unable to meet market demand are accelerating delisting. It is necessary to urge the outdated production capacity to withdraw and realize the integration and upgrading of resources, which has become a normal state of the automobile industry.
In the face of overcapacity, not only is it highly vigilant in the traditional automotive sector, but it has also been strictly controlled in the field of new energy vehicles. At present, several companies such as Beiqi Xinneng, Changjiang Automobile, Qiandao Automobile, Chery New Energy, Min'an Automobile and Wanxiang Group have obtained the qualification for pure electric vehicle production. It is understood that there are currently more than 200 companies applying for new energy vehicle production qualifications. The industry believes that such strict control of the entry barriers for new energy vehicles is also a consideration to prevent overcapacity.