Geely chair says global car industry faces ‘serious over capacity’

Chinese carmakers that have been building plants abroad include BYD, Chery and Great Wall Motor

Geely's chairn and founder Li Shufu said on Saturday the global automotive industry was facing "serious over capacity" and the Chinese carmaker had decided not to build new manufacturing plants or expand production in existing facilities.
Geely's chairn and founder Li Shufu said on Saturday the global automotive industry was facing "serious over capacity" and the Chinese carmaker had decided not to build new manufacturing plants or expand production in existing facilities.
Image: Supplied

Geely's chair and founder Li Shufu said on Saturday the global automotive industry was facing "serious over capacity" and the Chinese carmaker had decided not to build new manufacturing plants or expand production in existing facilities.

Li made the comments at an auto forum in the central city of Chongqing, according to the company. Geely Holding owns many automotive brands including Geely, Zeekr and Volvo.

His comments come as the Chinese car industry, the world's largest, has been locked in a brutal price war that is forcing many players to look to markets abroad and has prompted Chinese regulators to call for a halt.

Chinese carmakers that have been building plants abroad include BYD, Chery and Great Wall Motor.

Geely is planning to use French carmaker Renault's existing production facilities in Brazil and take a minority stake in Renault's business in the Latin American country, according to an announcement it made in February.

Reuters reported in April, citing sources, that Chinese regulators had delayed approval for that. Geely said in response at the time its cooperation with Renault in Brazil had been successful.


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