Nikkei. The combined capacity of the 10 largest players Chinese automakers is expected to jump from around 12 million units in 2009 to 21 million or so in 2012.
SAIC plans a 30% increase over 2009 capacity by 2012
China FAW plans to nearly double output capacity
Chana Auto Co. plans to build a new plant to be jointly operated with Ford
In 2009, new car sales in China surged 46% to 13.64 million units, vaulting the country past the US to become the No. 1 auto market for the first time ever. According to one industry body, the market will likely expand more than 10% to about 15 million units in 2010.
But market researcher J.D. Power and Associates cautions that the average capacity utilization rate at major Chinese automakers will probably fall to 70% in 2012, down from about 80% in 2009. And, the Chinese government has warned that the industry could eventually face excess capacity.