What does overproduction mean in economics?

Overproduction, also known as overcapacity. It means that the products produced by enterprises have exceeded the market demand for the products.

For example, the number of cars that consumers need to buy is 100, but the manufacturer has produced 1000, which is overcapacity. Supply exceeds demand, which will cause product prices to shrink. If the market demand is 100 vehicles, but the enterprise can only produce 50 vehicles, this is insufficient production capacity. When the supply is less than the demand, the price of the product will inevitably rise.