Geely sounds alarm on auto overcapacity


FILE PHOTO: Geely Auto logo is seen in this illustration taken January 16, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

SHANGHAI: The global automotive industry was facing “serious overcapacity” and that the Chinese automaker had decided not to build new manufacturing plants or expand production in existing facilities, according to Geely chairman and founder Li Shufu.

Li made the comments last Saturday at an auto forum in the central city of Chongqing, according to his company.

Geely Holding owns multiple automotive brands including Geely Auto, Zeekr and Volvo. His comments come as the Chinese auto 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 automakers that have been building plants abroad include BYD, Chery Auto and Great Wall Motor.

Geely plans to use Renault’s Brazil facilities and take a minority stake in its local business, per a February announcement. — Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
Geely ,

Next In Business News

Oil climbs as fading US-Iran peace hopes raise supply risks
Oil prices climb, bond yields rise as US-Iran ceasefire expires
Affin Bank, Baiduri Bank expand cross-border banking collaboration
Ringgit strengthens vs major currencies, little changed against greenback
FBM KLCI holds steady as geopolitical risk mounts
Trading ideas: JS Solar, YBS, Kerjaya, Ekovest, DXN, Straits Energy, Alam Maritim, Destini, Unisem, Wasco, Malakoff, Sports Toto, 99 Speed Mart, SkyeChip, HE, AmFirst REIT, Seng Fong
Stocks, dollar fall after weak data; yields rise
From oil palm to soap bar: Cinderella at the sink
NEEAP 2.0 to spur energy-efficiency spending
Factories in sweeping regulatory overhaul

Others Also Read