There are some concerns emerging that China’s auto industry – despite its current boom – could experience excess capacity and a price war by 2012.

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The China Business Journal reports that the top 14 auto makers in China will have a combined output capacity of 23 million vehicles by 2012, though demand is only expected to reach 20 million cars by that time, it says.


China is the world’s largest auto market, but the government has reportedly launched a probe into expansion plans by car makers and may delay construction of new plants, according to the report.

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