Geely Chairman and founder Li Shufu warned that the global automotive industry is facing “serious overcapacity” and announced that the Chinese automaker will not build new factories or expand existing ones. His remarks came during an auto forum in Chongqing.

Geely Holding, which owns brands such as Geely Auto, Zeekr, and Volvo, is taking a cautious approach as China’s auto market grapples with a fierce price war.

The competition has pushed many Chinese automakers to seek growth overseas, prompting regulators to urge restraint.

While rivals like BYD, Chery, and Great Wall are building plants abroad, Geely plans to utilize existing Renault facilities in Brazil and take a minority stake in Renault’s operations there.

Regulatory approval for the deal has reportedly been delayed, though Geely maintains the partnership is progressing well.