(Bloomberg) China has said it will consolidate its electric vehicle industry, which is already seeing the mushrooming of so many players.
The regulators are encouraging industrial mergers and restructuring to enhance market concentration. Consolidation is seen as a way to enhance fully market utilization.
Chinese minister for industry and information technology Xiao Yaking says market forces should be used as a basis for restructuring the sector.
The regulators are considering a minimum production capacity utilization rate for the industry. Provinces that do not meet the capacity would be banned from approving new projects until surplus capacity is attained.
The average production capacity utilization rate for automakers in China last year was about 53%.
Chinese EV stocks react. 9868: HKG is down -2.35%, 2015: HKG is down -1.43%, 002594: SHE is down -1.60%
