Usually means: Excess production ability exceeds demand.
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We found 16 dictionaries that define the word overcapacity:

General (14 matching dictionaries)
  1. overcapacity: Longman Dictionary of Contemporary English
  2. overcapacity: Merriam-Webster
  3. overcapacity: Oxford Learner's Dictionaries
  4. overcapacity: American Heritage Dictionary of the English Language
  5. overcapacity: Collins English Dictionary
  6. Overcapacity, overcapacity: Wordnik
  7. overcapacity: Wiktionary
  8. overcapacity: Webster's New World College Dictionary, 4th Ed.
  9. overcapacity: Infoplease Dictionary
  10. overcapacity: Dictionary.com
  11. Overcapacity: Wikipedia, the Free Encyclopedia
  12. overcapacity: TheFreeDictionary.com

Business (1 matching dictionary)
  1. BusinessDictionary.com (No longer online)

Tech (1 matching dictionary)
  1. AUTOMOTIVE TERMS (No longer online)

Definitions from Wiktionary (
)
American English Definition British English Definition
noun:  A capacity for the production of a commodity or product that is in excess of what is needed.

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