AsianFin -- Geely Auto, China’s second-largest carmaker, said it will not construct new manufacturing plants due to global overcapacity—a decision that could reverberate across the industry as many Chinese automakers struggle to turn a profit.

Speaking at the Chongqing Auto Show over the weekend, Chairman Li Shufu emphasized that the company would steer clear of adding redundant capacity and instead prioritize technological innovation to position itself as a leader in the future of mobility.