Published by Global Banking & Finance Review®
Posted on June 7, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleGeely's chairman warns of severe overcapacity in the global auto industry, affecting production plans. Geely collaborates with Renault in Brazil amid Chinese market challenges.
SHANGHAI (Reuters) -Geely's chairman and founder Li Shufu said on Saturday that the global automotive industry was facing "serious overcapacity" and that the Chinese automaker had decided not to build new manufacturing plants or expand production in existing facilities.
Li made the comments at an auto forum in the central city of Chongqing, according to the company. Geely Holding owns multiple automotive brands including Geely Auto, Zeekr and Volvo.
His comments come as the Chinese auto industry, the world's largest, has been locked in a brutal price war that is forcing many players to look to markets abroad and has prompted Chinese regulators to call for a halt.
Chinese automakers that have been building plants abroad include BYD, Chery Auto and Great Wall Motor.
Geely is planning to use French automaker Renault's existing production facilities in Brazil and take a minority stake in Renault's business in the Latin American country, according to an announcement it made in February.
Reuters reported in April, citing sources, that Chinese regulators had delayed approval for that. Geely said in response at the time that its cooperation with Renault in Brazil had been successful.
(Reporting by Brenda GohEditing by Tomasz Janowski and Louise Heavens)
Geely's chairman Li Shufu stated that the global automotive industry is facing 'serious overcapacity'.
The price war is forcing many players in the Chinese auto industry, the world's largest, to look for markets abroad.
Geely plans to use Renault's existing production facilities in Brazil and take a minority stake in Renault's business in the country.
Other Chinese automakers building plants abroad include BYD, Chery Auto, and Great Wall Motor.
Geely stated that its cooperation with Renault in Brazil had been successful despite the reported delay in regulatory approval.
Explore more articles in the Finance category
