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Electric cars in China

China's EV investment drive risks veering into overcapacity

Factory usage could fall below 50% once new factories come online

China-made Model 3 cars at Tesla's Shanghai factory. The world's biggest auto market is getting crowded.   © Reuters

BEIJING -- China may be headed for a glut of electric vehicles in a few years as manufacturers rush to add capacity, seeking bigger slices of the world's top auto market.

In a sign of how eager local governments are to boost production, state-owned Dongfeng Motor received approval for a site to make 100,000 new energy vehicles (NEVs) yearly in its hometown of Wuhan in just one day, instead of the roughly one month that is usually needed.

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