China’s internal combustion engine (ICE) car production is turning into zombie factories as the country’s rapid transition to electric vehicles, writes Finance Times.
According to Shanghai consultancy Automobility, 17.7 million cars with internal combustion engines were produced in China in 2023. This is 37% less than in 2017. This sharp decline in demand for these vehicles means that half of the installed capacity of the sector, approximately 25 million of the annual capacity of 50 million, cannot be delivered.
The aggressive price war in the Chinese automobile industry only increases the pressure on ICE automobile manufacturers. This is also being faced by leading foreign players Toyota, Volkswagen and GM, who have been slower to produce popular low-cost electric vehicles and hybrid models and are rapidly losing market share to BYD and Tesla.
Given these dynamics, analysts predict that hundreds of zombie factories will emerge in the Chinese auto market over the next decade.
Before that the Central Bank of the Russian Federation clarified The factor that limits the increase in car prices in the country.
Previously in Russia was recorded increase in used car sales.