According to a BloombergNEF study, global automotive manufacturing capacity stands at 142 million vehicles per year, while sales in 2026 are projected to reach 85 million units. This leaves excess production capacity of 57 million vehicles annually.
The average capacity utilization rate at automotive plants stands at 60%, compared with a break-even threshold of at least 80%. The combined operating profit margin of global automakers stood at 3.6% in 2025.
Over the past decade, global automotive production capacity has increased by 28 million vehicles, with 80% of this expansion attributable to China. Meanwhile, vehicle sales grew by only 5 million units. China now accounts for more than one-third of global automotive production capacity, while its share of worldwide vehicle sales stands at approximately 25%.
By 2030, production capacity dedicated exclusively to internal combustion engine vehicles is expected to decline by 5 million units, while capacity for electric vehicles and vehicles manufactured on mixed production lines is projected to increase by more than 10 million units.
According to the energy think tank Ember, countries of the Global South have spent more than $235 billion on imports of Chinese clean energy technologies since the beginning of 2024. Their share of global purchases of Chinese equipment has exceeded 50%.
During this period, Global South countries spent $25.3 billion on electricity grid equipment, accounting for 51.5% of global expenditure, compared with $23.8 billion (48.5%) in the rest of the world. Major importers include India, Pakistan, the Philippines, Brazil, South Africa, and Vietnam.
Purchases of heating and cooling equipment reached $26 billion (55.3% of the global total), compared with $21 billion (44.7%) in the rest of the world. Global South countries also spent $47 billion on imports of Chinese solar panels, representing 55.4% of global purchases, compared with $37.8 billion (44.6%) in other countries.
Meanwhile, imports of Chinese electric vehicles by Global South countries reached $73.2 billion in January–August 2026, compared with $6 billion during the same period in 2023.
Since 2024, Global South countries have accounted for 29% of global expenditure on imports of Chinese battery energy storage systems, while the rest of the world has accounted for 71%. At the same time, their purchases increased from $9 billion in January–August 2024 to $21 billion during the corresponding period in 2026, representing an increase of more than 2.3 times.
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