Chinese fossil car production plunges amid surging EV demand
Dormant Chinese ICE vehicle factories may be the giant canary in the coal mine for the global car industry as it faces a death spiral thanks to the rapid shift to electric vehicles.
The Financial Times story this week titled âZombie car factories on the rise in China as buyers opt for EVsâ reports that the asset value of internal combustion engine (ICE) vehicle factories has plummeted as legacy carmakers scale back production because of the growing popularity of electric vehicles.
The gigantic stranded asset problem facing fossil carmakers has been anticipated for many years by keen observers of the industry however now âits happeningâ.
The Financial Times says in 2017, Hyundai invested $US1.15 billion in a new factory in Chongquing in south-western China the capacity of 300,000 ICE vehicles per year but just 6 years on and the company has been forced to sell the new factory in December âfor less than a quarter of the investment value.â

















