SHANGHAI, June 7 (Reuters) - Geely's chairman and

founder Li Shufu said on Saturday that the global automotive

industry was facing "serious overcapacity" and that the Chinese

automaker had decided not to build new manufacturing plants or

expand production in existing facilities.

Li made the comments at an auto forum in the central city of

Chongqing, according to the company. Geely Holding owns multiple

automotive brands including Geely Auto, Zeekr

and Volvo.

His comments come as the Chinese auto industry, the world's

largest, has been locked in a brutal price war that is forcing

many players to look to markets abroad and has prompted Chinese

regulators to call for a halt.

Chinese automakers that have been

building plants

abroad include BYD , Chery Auto and

Great Wall Motor.

Geely is planning to use French automaker Renault's

existing production facilities in Brazil and take a minority

stake in Renault's business in the Latin American country,

according to an announcement it made in February.

Reuters reported in April, citing sources, that Chinese

regulators had

delayed approval

for that. Geely said in response at the time that its

cooperation with Renault in Brazil had been successful.