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Is the overcapacity of new energy vehicles a false proposition?

Concerns about the overcapacity of China's new energy vehicles have always existed, and it has become even more powerful in the near future. Even foreign media have begun to pay attention to this issue. Reuters reported recently that it hopes to invest hundreds of auto companies in China's clean transportation investment in Dongfeng, including renewable energy equipment manufacturers, battery manufacturers, real estate developers and established auto giants. But not all new energy car companies can reach the end. Over the years, China has been suffering from overcapacity in industries such as steel, coal, and solar panels. Now, new energy vehicles will become the next overcapacity industry.

Three months ago, the Wall Street Journal also published an article entitled "China has 487 electric car manufacturers, but the local government is clamoring for more", with more detailed data to remind the Chinese concerned about the overcapacity of new energy vehicles. . According to the article, China's new energy vehicle sales reached 777,000 units last year, up 53.3% year-on-year. Ironically, these cars are produced by 487 car companies (the average sales volume of each car is less than 1600).

As a representative of the new forces in the car industry, for the automotive industry, the investment has a certain periodicity, or it will last for several years, and the production capacity will be comprehensively considered in batches according to the sales situation. In the early stages of development, the overall investment may be very small. Wu Songquan, chief expert of China Automotive Technology and Research Center, has similar views. He believes that 20 million vehicles may be the planned capacity of local and car companies. It remains to be seen whether it will really land. In fact, under normal circumstances, car companies can adjust the production rhythm to cope with changes in market demand. If actual demand approaches or exceeds design capacity, enterprises can respond by appropriately increasing production shifts or extending production time; At the same time, it can reduce production shifts and reduce production time.

However, although the practice of adding the (planning) production capacity of the car companies in the next few years to the current sales volume is “fundamentally wrong”, China’s new energy vehicles will face the pressure of overcapacity in the coming period, which is almost in the industry. All are recognized. As Wu Songquan said, overcapacity is in fact inevitable, but it should be in a scientific and reasonable space, not excessive.

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