E-car overcapacity looms large

Companies chasing new energy vehicle profits could crowd each other out

China's fledging new energy vehicle sector is confronted with the risk of severe overcapacity as traditional automakers and fresh faces are rushing to exploit the segment that is believed to be the largest gold mine of the automotive industry.

On Tuesday, Wanxiang Group won the nod from the authorities for its plant in Zhejiang province, which will be able to produce 50,000 electric cars per year when completed.