Part 4/10:
Despite the government’s desire for the industry to consolidate around a few key players for efficiency, the reality has been opposite. Provinces across China are keen to establish their own automotive industries, leading to rampant proliferation as local governments push for the development of new manufacturers. This circumstance results in excess capacity, as China's automotive production can meet half of the global vehicle demand—contrary to the domestic need of around 25 million units annually.