The China Association of Automobile Manufacturers (CAAM), a government-backed industry consortium, announced that the 10 millionth electric vehicle rolled off production lines on Thursday, an increase of 4.3 percent from the same period of last year, and surpassing 2023 production. seven weeks before the end of the year. CAAM did not name the automaker.

While the production increase reflects China’s prowess in the electric vehicle industry and domestic consumers’ growing interest in green and smart vehicles, it has also raised fears of overcapacity in the mainland’s auto sector. , where gasoline vehicles are shunned by buyers.

“As sales of electric vehicles surpass those of conventional gasoline cars, more production facilities and existing workers will become laid off,” said Phate Zhang, founder of Shanghai-based electric vehicle data provider CnEVPost . “Demand for gasoline cars will weaken in the coming years.”

The mainland has an overall production capacity of 40 million vehicles per year and sales of about 22 million units, according to Shanghai-based consultancy Automobility.