Utilisation rate of Chinese plants are expected to surpass 70 percent in 2015
- China's automobile production capacity stood at 36.81 million units at the end of 2014 and is projected to increase by over 20 million units until 2020 to 58.24 million units, according to data compiled and processed by our partner in China.
Of which, passenger cars accounted for 25.03 million units at the end of 2014 and are expected to expand over 15 million units to 40.46 million units by 2020. As for mini vehicles, which include utility vehicles and mini trucks, capacity volume rose to 4.69 million units by the end of 2014 and is calculated to go up by 2.35 million units to 7.03 million units by 2020. In contrast, medium/large utility vehicles, which include medium/heavy trucks and medium/large buses, showed only a modest rise.
Of which, passenger cars accounted for 25.03 million units at the end of 2014 and are expected to expand over 15 million units to 40.46 million units by 2020. As for mini vehicles, which include utility vehicles and mini trucks, capacity volume rose to 4.69 million units by the end of 2014 and is calculated to go up by 2.35 million units to 7.03 million units by 2020. In contrast, medium/large utility vehicles, which include medium/heavy trucks and medium/large buses, showed only a modest rise.
- As the Chinese automotive market has gone from rapid growth to marginal increase since 2011, operating ratio of automobile manufacturing plants dropped from 85 percent as of 2010 to 64 percent by 2014 as a result of runaway production capacity expansion despite meager increase in production volume.
- While Chinese factories stood at 65percent in 2014, they are expected to surpass 70 percent in 2015 thanks to robust SUV sales. The operating ratio of European carmakers is expected to drop from 97 percent in 2014 to around 90 percent in 2015 due to dull increase in VW's production volume in 2015. Looking at Japanese automakers, negative growth of Nissan and Toyota in 2015 is likely to push down year-round operating ratio. Amid general market slowdown, operating ratio is expected to further decline if carmakers go through with their planned capacity expansion projects.
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