As the mainland scrambles to invest in the production of new energy vehicles, Jiangsu Province is the first to sound the alarm of overcapacity. Jiangsu Provincial Development and Reform Commission pointed out that due to the continuous expansion of vehicle production capacity, in 2020, the capacity utilization rate of Jiangsu Province’s auto industry has further declined to 33%, which has seriously deviated from the reasonable range of capacity utilization.
Shanghai Press Group’s new media “Interface News” pointed out that after the State Council released the “energy-saving and new energy vehicle industry development plan (2012-2020)” in 2012, it officially unveiled the prelude to the mainland’s new energy vehicle industry investment frenzy.
According to statistics, from 2015 to 2020, there will be 202 new new energy vehicle production projects in mainland China, with a total investment of more than RMB 1.2 trillion (about NTD 5.16 trillion) and a total capacity of 30 million vehicles.
According to the China Association of Automobile Manufacturers, in 2020, the production and sales of new energy vehicles on the mainland will be 1.366 million and 1.367 million respectively, with an annual growth of 7.5% and 10.9% respectively, both hitting a record high. At the same Time, the problem of overcapacity of new energy vehicles on the mainland is becoming increasingly serious.
Interface News pointed out that the top three provinces in the mainland in terms of the number of new energy vehicle production projects are Jiangsu, Zhejiang and Jiangxi. Among them, Jiangsu has 31 new energy vehicle production projects, and the capacity planning of new energy vehicle production projects has exceeded 5 million units.
The “New Energy Vehicle Industry Development Plan (2021-2035)” proposes that by 2025, new energy vehicle sales in mainland China will be about 20% of total new vehicle sales. The China Association of Automobile Manufacturers estimates that the annual sales volume of new energy vehicles on the mainland will exceed 5 million units by then.
However, according to the current investment plans for the production of new energy vehicles around the mainland, by 2025, the annual production capacity of new energy vehicles on the mainland will reach 30 million units, which means that it will be six times the sales volume.
Jiangsu Provincial Development and Reform Commission recently released the “Notice on Effectively Strengthening the Supervision and Management of Investment Projects in the Automobile Industry and Risk Prevention and Control” pointed out that by the end of 2020, Jiangsu has built an annual production capacity of 3,971,500 vehicles, with 660,000 vehicles under construction. However, in 2020, the actual annual output of Jiangsu automobiles is only 1,131,800 units, with a capacity utilization rate of 33.03%, which is about 20 percentage points lower than the continental national average.
Among the 33 vehicle plants in Jiangsu, only five enterprises have a capacity utilization rate higher than the national industry average on the mainland.
Jiangsu Provincial Development and Reform Commission said that from 2016 to 2020, the capacity utilization rate of automobile OEMs in Jiangsu Province was 78%, 56.7%, 52.4%, 39.76% and 33.03%, showing a downward trend year by year, which has now seriously deviated from the reasonable range of capacity utilization.
To this end, Jiangsu Provincial Development and Reform Commission said that the future will further strengthen the guidance and supervision of the province’s automotive industry investment projects, strict control of new vehicle production capacity, while the construction of slow projects or low capacity utilization rate of enterprises will be established in due course to exit the mechanism.
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