overcapacity

noun

over·​ca·​pac·​i·​ty ˌō-vər-kə-ˈpa-sə-tē 

-ˈpa-stē

: excessive capacity for production or services in relation to demand

Examples of overcapacity in a Sentence

The airlines are lowering their prices because of an overcapacity of seats.

Recent Examples on the Web

The comments underscore policymakers’ desire to avoid a repeat of the overcapacity seen in other emerging industries like electric vehicles, which has contributed to deflationary pressures. —Bloomberg, Fortune, 29 Aug. 2025

Factory-gate deflation deepened in June and July, falling to its worst level in two years as sluggish domestic demand compounded the country’s overcapacity pressure. —Anniek Bao, CNBC, 27 Aug. 2025

The decline was driven by overcapacity, lower material costs, wider use of lithium-iron-phosphate batteries, and slower growth in electric vehicle sales. —Dianne Plummer, Forbes.com, 22 Aug. 2025

Brutal competition in China’s clean tech sector is forcing electric-vehicle companies abroad in search of growth while the solar industry readies a cartel to combat mammoth overcapacity. —Prashant Rao, semafor.com, 20 Aug. 2025

Word History

First Known Use

1877, in the meaning defined above

Rhymes for overcapacity

• audacity
• capacity
• loquacity
• mendacity
• opacity
• pugnacity
• rapacity
• sagacity
• tenacity
• veracity
• vivacity
• voracity