The Chinese automobile industry faces a serious issue with overcapacity, Chen Bin, director of the National Development and Reform Commission's Department of Industry, warns.
In statements made at the 2012 International Forum on Chinese Automotive Industry Development and cited in a report appearing in Xinhua today, Mr. Chen (pictured) points out that Chinese manufacturers have embarked on a large number of production expansion projects for their factories over the last decade. As growth in the market begins to recede to normal, sustainable levels, Mr. Chen urges manufacturers to rethink their production plans. He emphasizes that is essential for manufacturers to make their business plans in accordance with industry realities in order to achieve sustainable development.
Su Bo, Deputy Minister of Industry and Information Technology, adds that the industry as a whole is still far too reliant on foreign technology, with domestic own brand manufacturers continuing to perform weakly. Mr. Su hopes to see the industry's focus shift from quantity to quality. He adds that there is still a lot of room for the industry to develop if it concentrates more on improving the quality of its products and developing new innovations.
The 2012 International Forum on Chinese Automotive Industry Development marks the eighth iteration of the event, which has been held continuously since 2005. This year's summit, which was hosted by the China Automotive Technology and Research Center, Society of Automotive Engineers of China and China Association of Automobile Manufacturers, focused on economic development and industry reform.
