Amman, June 24 (Petra) – China's Ministry of Industry and Information Technology has revoked the production licenses of eight companies manufacturing conventional vehicles and removed them from the national registry as part of efforts to restructure the automotive sector and address overcapacity.
According to Chinese and international press reports, the decision comes amid rapid changes in the industry, including a shift toward electric and hybrid vehicles, intensified competition and declining profitability for traditional automakers.
The affected companies reportedly include local brands that have faced financial difficulties and weakened competitiveness in recent years. Industry observers say the restructuring reflects broader consolidation in China's auto sector, driven by price competition, slowing domestic demand and stricter technological and environmental requirements.
Experts expect further mergers, acquisitions and potential market exits as companies adapt to the transition toward electric and smart vehicle technologies. They note that restructuring efforts may improve product quality and after-sales services in export markets.
In comments to the Jordan News Agency (Petra), Jihad Abu Nasser, representative of the automotive sector at the Jordanian Free Zones Investors Association, said the decision reflects an ongoing restructuring process rather than the disappearance of brands or the end of services.
Abu Nasser explained that many of the affected brands still have a large number of vehicles in operation, making continued maintenance and spare parts supply necessary.
He added that responsibility for after-sales services will remain with parent companies, which often manage these brands through larger industrial groups.
Abu Nasser noted that the impact on the Jordanian market is expected to be limited due to the relatively small presence of these brands compared to others, with no significant disruption anticipated.
//Petra// AK
