Chinese Auto Industry May Face Excess Capacity

BEIJING, Feb. 9 -- China's automotive industry is expected to face excess capacity by 2012, and 14 of the country's largest auto makers will have a combined output of 23 million units, compared to demand of 20 million units at that time, according to the China Business Journal.

The National Bureau of Statistics pointed out that the composite index of the auto industry rose to 102 points in the fourth quarter last year, compared to 96 points in the third quarter. Inventory of automobiles began to increase last year.

Meanwhile, the alertness index of the auto industry also reached 116.7 points in the four quarter of last year, increasing by 26.7 pointes from the third quarter.

Reportedly, the government is taking measures to delay the expansion of auto manufacturers and will examine auto makers' expansion plans.