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