Beijing, China, 28 Dec – The Chinese government has taken measures to control investment in the car manufacturing sector in order to avoid a situation of excess production capacity, the Chinese press reported Wednesday.
The Commission for National Reform and Development, China’s main planning body, decided that for a manufacturer to be authorized to open a car factory, its sales in the previous year must account for at least 80 percent of its installed capacity.
The Chinese authorities have on several occasions shown their concern about excess installed capacity of the country’s car manufacturing industry, despite the market’s strong growth.
Total vehicle sales rose 14 percent in 2005, to 5.92 million new vehicles and in the first 11 months of 2006 6.59 million vehicles were built and 6.45 million were sold. (macauhub)