Article: CHINA'S AUTO INDUSTRY UNDER THREAT FROM OVER-RAPID EXPANSION.

SHANGHAI, Sept 15 Asia Pulse - China's auto industry has shown signs of overcapacity, but automakers are still planning further expansion. It is predicted that the country's auto production capacity will probably exceed 16 million units by 2012.

Large Chinese auto companies including Shanghai Automotive Industry Corp., First Automobile Works, Dongfeng Motor Corp. (SEHK:0489) and Chongqing ChangAn Automobile Co. (SSZ:200625) have each announced a two-to-three million unit sales goals for 2010-2011. Chery Automobile Co. has set an output and sales goal of one million units by 2012. Beijing Automobile Works is aiming at output and sales of 1.5 million units in 2010 ...

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