Geely Chairman and founder Li Shufu has warned that the global automotive industry is grappling with "serious overcapacity", signalling a strategic shift for the Chinese carmaker as it shelves plans to expand production.
Speaking at an auto forum in Chongqing on Saturday, Li said Geely would not build new manufacturing plants or increase output at existing facilities.
Geely Holding, the parent company of Geely Auto, Zeekr, and Volvo Cars, made the announcement as the Chinese car market remains mired in a cutthroat price war.
The intensifying competition has led many domestic automakers to pivot towards overseas expansion, even as regulators call for restraint.
Firms such as BYD, Chery Auto, and Great Wall Motor have been aggressively building production capacity abroad to manage excess supply and tap into new demand.
Geely, however, is taking a different approach. Instead of constructing new facilities, the company plans to utilise French carmaker Renault’s existing plants in Brazil and take a minority stake in Renault's Latin American operations, according to a partnership announcement in February.
