China’s auto industry on the brink of crisis

China’s car market grew rapidly, but production has exceeded demand. As a result, prices have fallen and many companies are not making a profit.

Excess cars are piling up in warehouses or being sold at a loss. Some are being exported at low prices.

Experts compare this situation to the crisis in the real estate and solar panel markets. The government, however, continues to push for increased production.

Analysts believe some factories need to be closed, but local authorities oppose this. Therefore, the problem may persist.