China's production capacity has reached 37 million vehicles per year in 2014
- Whereas Europe (including Russia, Ukraine and Turkey) currently has a production capacity of 27.4 million units (PC + LUV), China currently has a production capacity of 37.4 million, i.e 10 million more.
- In 2014 Europe will register a utilisation rate of its plants of about 70%, while the average rate should really exceed 80% to be efficient.
- China has an even lower rate, since it did not exceeded 60% in 2013 and will not exceed 65% in 2014, given a production volume that should increase by about 2 million units this year.
- The main difference between these two regions is in fact the expected increase in annual car production. While Europe is meant to have an average annual increase of about 3% until 2018 (500 000 additional units per year), China should have an average annual increase three times higher, of about 9% per year until 2018 (ie 2 million units per year).
- With such a development and stagnating production capacities, China would have a utilisation rate of its factories of around 70% in 2015, 75% in 2016, 80% in 2017 and 85% in 2018. But this scenario is not the most likely since China is constantly building new production capacities (2 million more before 2017).
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