In an industry capable of making 55.5 million vehicles annually, overall capacity utilisation last year was just 49.5, data compiled by Shanghai-based Gasgoo Automotive Research Institute shows.
The headline rate was dragged down by some of the smallest manufacturers. Hainan Haima Automobile, a venture that started as a partnership with Japan's Mazda and later attracted investment from FAW Group, posted a meagre capacity utilisation rate of 1.5 last year, the data shows. From a production line capable of churning out 450 000 vehicles, a mere 6 836 units rolled off its lines.
A similar fate befell Haima, another Hainan-based manufacturer with historical ties to Hainan Haima, which recorded an equally dismal 1.7 utilisation rate.
Even the burgeoning electric vehicle segment isn't immune to vast capacity underutilisation. Mengshi Automobile Technology, a premium electric off-road brand under Dongfeng Group, used just 1.9 of its planned capacity, highlighting the challenges of scaling niche high-end EV production.
Xiaomi, whose debut SU7 sedan became an instant hit, quickly ramped up production capacity to 95.5. c 2025 Bloomberg LP