10:10 pm, Wednesday, 17 September 2025

Reuters probe: China’s auto sector faces overcapacity and policy strain

Sarakhon Report

Production targets outpace demand

An investigative report finds Chinese auto policies that once turbocharged output have produced a glut of unsold vehicles and stressed dealers and suppliers. The piece details how incentives and local targets have encouraged overinvestment in manufacturing capacity.

Business fallout and unusual sales tactics

Automakers and traders are resorting to steep discounts, buybacks, and novel tactics to move stock, raising concerns for margins and smaller suppliers. Analysts say long-term correction will require policy adjustments and demand stimulus.

06:45:35 pm, Wednesday, 17 September 2025

Reuters probe: China’s auto sector faces overcapacity and policy strain

06:45:35 pm, Wednesday, 17 September 2025

Production targets outpace demand

An investigative report finds Chinese auto policies that once turbocharged output have produced a glut of unsold vehicles and stressed dealers and suppliers. The piece details how incentives and local targets have encouraged overinvestment in manufacturing capacity.

Business fallout and unusual sales tactics

Automakers and traders are resorting to steep discounts, buybacks, and novel tactics to move stock, raising concerns for margins and smaller suppliers. Analysts say long-term correction will require policy adjustments and demand stimulus.