Overcapacity: A Potential ‘Speed Bump’ in the World’s Largest Automotive Market

Overcapacity: A Potential ‘Speed Bump’ in the Wor...

KPMG Industry Updates - Issue 2, April 2012  

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KPMG Industry Updates

Overcapacity in the auto industry is not an issue across the board. Rather, it is a structural issue with "over" inefficient capacity and "under" efficient capacity. To ease the problem, there needs an industry consolidation by eliminating inefficient capacities. Moreover, carmakers need to enhance capabilities in strategic positioning, brand management, core technologies, product planning, operational management and human resource development.

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