• Industry: Industrial Markets, Automotive
  • Type: Business and industry issue, Publication series
  • Date: 4/26/2012

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

KPMG Industry Updates - Issue 2, April 2012


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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