Definition of overcapacity noun from the Oxford Advanced American Dictionary

 

overcapacity

 noun
noun
NAmE//ˌoʊvərkəˈpæsət̮i//
 
[uncountable, singular](business)
 
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the situation in which an industry or a factory cannot sell as much as it is designed to produce the problems of overcapacity in the car industry
See the Oxford Advanced Learner's Dictionary entry: overcapacity