Recently, the statistics released by the Passenger Car Market Information Joint Association show that in 2021, domestic automobile manufacturers sold 21.456 million generalized passenger cars (including mini cars), an increase of 6.6% year-on-year. The data shows that China's auto market has ended 3 years of continuous negative growth, and finally turned into positive growth.
By the end of 2021, the national passenger car production capacity will total 40.89 million units, and the capacity utilization rate will be 52.47%. Although it is 4% higher than 48.45% in 2020, it is still in the range of serious overcapacity.
According to the statistics of the Association of Multipliers, there are 86 companies with sales in 2021. The total production capacity of these enterprises is 37.038 million units, and the corresponding overall capacity utilization rate is 57.93%. It can be seen that in the total production capacity of passenger cars, the remaining enterprises have 3.85 million production capacity is completely idle.
Here is an analysis of capacity utilization rates from 86 companies:
Analysis of passenger car production capacity by company sales volume in 2021
The 16 companies with sales of more than 600,000 vehicles sold a total of 16.6106 million units, accounting for 77.42% of the total sales, and a total production capacity of 20.39 million units, accounting for nearly 50% of the total production capacity. The average capacity utilization rate of these 16 enterprises is 81.03%, which is in a reasonable range.
The total sales of the 22 companies with sales of more than 200,000 vehicles accounted for 88.86% of the total sales, leaving less than 13% of the market share for the other 64 companies.
There are 29 companies that sell less than 10,000 units, and the production capacity of these companies accounts for 13% of the total, while sales account for only 0.46% of the total, and the average capacity utilization rate is only 2.02%.
Even within the range of sales data, the capacity utilization rate of specific enterprises is very different.
The following are the results of analyzing the overall capacity utilization rate of enterprises by sorting the value of enterprise capacity utilization:
Analysis of passenger car production capacity by enterprise capacity utilization rate in 2021
There are 11 enterprises with a capacity utilization rate of more than 100%, basically has a full three-shift system, and has to work appropriate overtime on rest days. Among the 11 enterprises, 6 are wholly foreign-owned or joint ventures in China, and 5 are domestic-funded enterprises. In 2021, there are 4 new energy vehicle companies with a capacity utilization rate of more than 100%, including Tesla.
The capacity utilization rate of 8 enterprises is between 80% and 100%, including 3 joint ventures and 3 new energy automobile enterprises, and the production capacity is in a normal state.
The capacity utilization rate of 10 enterprises is between 60% and 80%, of which there are 4 joint ventures, which should be capacity and surplus.
The capacity utilization rate of 4 enterprises is between 40% and 60%, of which 3 mainstream automobile companies have reduced the capacity utilization rate due to the significant reduction in sales in recent years.
The rest of the enterprises are definitely overcapacity, or even seriously overcapacitated. In particular, the capacity utilization rate of 29 enterprises is less than 10%. These smaller and lower sales enterprises not only have serious overcapacity, but many companies are still negative growth when the industry has a growth of 6.6%. Without fundamental changes, there is little hope that such enterprises will reverse the situation of overcapacity.
In the case of overall overcapacity of passenger cars, 10.46 million units of production capacity will be completed and put into operation by enterprises that have already qualified for production.
In 2021, 3.326 million new energy passenger cars will be sold, while the dedicated production capacity of new energy passenger cars has reached 5.695 million units, and the capacity utilization rate is 58.4%. Most of the construction capacity is new energy vehicles, and the existing production capacity of traditional automobile enterprises can also produce new energy vehicles in a common line.
Therefore, while solving the problem of overcapacity of traditional automobiles, the automotive industry must also prevent overcapacity of new energy vehicles.