Passenger car capacity is still overcapacity, with a utilization rate of only 52.47% in 2021

Although we are now the largest producer and sales country in automobile production, the production capacity of passenger cars in mainland China is not "just" only the market sales of more than 20 million units.

According to the statistics of the Federation of Passenger Vehicles, by the end of 2021, the total production capacity of passenger cars in the country will be 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.

Another thing to note is that among the passenger car companies in this statistics, there are a total of 86 with sales, and the total production capacity of these companies is 37.038 million units, which also means that 3.85 million production capacity of other non-sales companies is completely idle.

According to the data of the Association of Automobile Associations, among the 86 enterprises with sales in this statistics, there are 16 companies with more than 600,000 vehicles, and the total sales of these enterprises reach 16.6106 million vehicles, accounting for 77.42% of the total sales; the total production capacity is 20.39 million vehicles, accounting for nearly 50% of the total production capacity, and the average capacity utilization rate is 81.03%, which is in a reasonable range.

Analysis of passenger car production capacity by enterprise sales volume in 2021 (Source: China Association of Passenger Vehicles)

Among them, 11 enterprises have a capacity utilization rate of more than 100%, basically have opened a full three-shift system, and have to work appropriate overtime on rest days. Among the 11 enterprises, 6 are wholly foreign-owned or joint ventures in China and 5 are local enterprises. Thanks to the dividend of the new energy market in 2021, there are 4 new energy vehicle companies with a capacity utilization rate of more than 100%, including Tesla.

However, only a few are excellent. Among the remaining 70 companies, the capacity utilization rate is not ideal. Among them, 64 companies have annual sales of less than 200,000 and capacity utilization rates of less than 50%. There are 29 enterprises with less than 10,000 vehicles, and the capacity utilization rate is only 2.02%.

Overall, the larger the sales volume, the higher the capacity utilization rate, and vice versa. Nowadays, with the maturity of automobile consumption, the market head effect is obvious, and the survival of the fittest is gradually intensifying.

Xiaoxiang Morning News reporter Hu Xiong

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