KATHMANDU: Geely Chairman and Founder Li Shufu has raised concerns over “serious overcapacity” in the global automotive sector, stating that the company will not build new manufacturing plants or expand production at existing facilities.
Li made the remarks during an auto forum held in Chongqing last week, Geely Holding, which owns Geely Auto and several other automotive brands, said in a statement.
The announcement comes amid intense competition in the Chinese auto market, the largest in the world. A prolonged price war has pushed several automakers to shift focus to international markets. So much so, Chinese regulators have urged companies to hold back on excessive expansion.
While other major Chinese players like BYD, Chery Auto, and Great Wall Motor are expanding production abroad, Geely has opted for a different approach.
Earlier this year, the company announced plans to collaborate with French automaker Renault by using Renault’s existing manufacturing facilities in Brazil. As part of the agreement, Geely also intends to take a minority stake in Renault’s business operations in the region.
Although Chinese regulators have delayed approval of the Brazil deal, Geely says its cooperation with Renault in Brazil has been progressing successfully.
