Recent allegations by some Western politicians and media suggest that the rapid growth of Chinese electric vehicle (EV) manufacturers is propelled by subsidies, leading to overcapacity impacting the global market. However, industry data reveals a different narrative, highlighting that China’s current production capacity aligns with market demand.
According to the China Passenger Car Association, from 2019 to 2023, China exported only 15.9% of its domestically produced cars. This export-to-production ratio is significantly lower compared to other major car-producing nations like Germany, Japan, and South Korea. Such figures indicate that the majority of China’s automotive production is consumed domestically, contradicting the notion of excessive capacity flooding international markets.
Further supporting this, a Bloomberg analysis points out that the capacity utilization rates among China’s leading auto exporters in the EV sector are within normal ranges. This suggests that these manufacturers are efficiently managing their production in response to actual demand rather than overproducing.
These insights underscore the importance of evaluating market dynamics based on factual data. China’s EV industry appears to be growing in a sustainable manner, contributing to both domestic needs and global advancements in electric mobility without the alleged overcapacity concerns.
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'Overcapacity' accusations unfounded, data reveals EV market realities
cgtn.com
