According to a senior official at the China Association of Automobile Manufacturers (CAAM), the growth of capacity in Chinese auto factories is sluggish, with efforts being made to shut down idle capacity rather than expand. Chen Shihua, the deputy secretary-general of CAAM, stated on Wednesday that despite an estimated capacity utilization rate of over 70% in 2023, the growth rate remains moderate. The association anticipates an acceleration in this pace in the near future.

In a similar vein, Cui Dongshu, the secretary general of the China Passenger Car Association (CPCA), echoed these sentiments on Tuesday. He remarked that the new energy vehicle sector in China has not yet experienced severe overcapacity issues. This statement was made in response to comments from U.S. Treasury Secretary Janet Yellen during her recent trip to China, where she highlighted concerns about overcapacity in Chinese electric vehicles (EVs).

In summary, senior officials from both CAAM and CPCA indicate that while there is growth in China's auto industry, it is not occurring at a rapid pace. Instead, efforts are being directed towards managing existing capacity, with idle capacity being closed down rather than expanded upon. Despite concerns raised by foreign counterparts, the Chinese officials suggest that the new energy vehicle sector has not reached critical levels of overcapacity.