Hey there, tech enthusiasts! 🚀 Have you heard the buzz about China's electric vehicle (EV) sector? While rumors swirl about overcapacity in the industry, the data tells a different story. 📊 Let's dive in!
First off, overcapacity happens when industries produce more than what the market wants. But when we look at China's EV sector, it's clear they're charging full speed ahead! ⚡
According to the National Bureau of Statistics, China's overall industrial capacity utilization rate stood at 75.1% in 2023. Sure, that's a bit below the global standard of 80%, but guess what? Beijing isn't sweating it! 😎 In fact, this number is higher than it was in 2016 and has been ticking up recently.
Economist Fan Lei from Guolian Securities couldn't agree more. \"Under these circumstances, it's hard to believe that China has a serious structural overcapacity,\" he says. And we concur! 🙌
The real story is in the details. While some traditional sectors like cement and glass might be lagging, the EV industry is zooming ahead. 🏎️ EV giants like BYD, SAIC, and Li Auto boast capacity utilization rates exceeding 80%. Meanwhile, producers of internal combustion engine (ICE) vehicles are idling at rates well below 50% as consumers shift their gears towards greener options. 🌿
This transition shows that China's EV sector isn't just surviving; it's thriving! 🚀 So next time you hear whispers about overcapacity, you'll know the facts. China's EV industry is fully charged and ready to roll! 🔋✨
Reference(s):
Capacity utilization data shows no overcapacity in China's EV sector
cgtn.com
