Li Shufu, the chairman of Zhejiang Geely Holding Group, has expressed deep concerns over the escalating issue of overcapacity within the global automotive industry. In a recent statement, he highlighted how the surge in vehicle production has outpaced demand, leading to significant ramifications for manufacturers. This situation not only threatens the profitability of automakers but also poses a risk to the sustainability of the industry as a whole.

Shufu's warnings come at a time when the automotive sector is grappling with rapid technological advancements, particularly in electric vehicles. As companies rush to innovate and expand their lineups, the market finds itself saturated with choices, potentially resulting in fierce competition and declining prices. This state of overcapacity could compel manufacturers to rethink their strategies, particularly regarding investment and production capacities, to avoid prolonged financial distress.