For the first time, 'capacity warning and control' (产能预警调控) has been written into the Intelligent Connected New Energy Vehicle industry's 15th Five-Year Plan, the Securities Times reported on September 14, marking a notable shift in policy focus from scale expansion toward governance and quality.
National Bureau of Statistics data shows that automobile manufacturing capacity utilization fell to about 70.3% in the first quarter of 2026 and edged up only marginally to 70.8% in the second quarter — below the 75% line typically regarded as a healthy level for manufacturing, leaving the industry in a warning zone.
The plan calls for strict control over the launch of new independent NEV entrants, greater encouragement of mergers, acquisitions and cross-regional integration, deeper group-based management reform of automakers, and an extension of capacity control to power batteries. Cui Dongshu of the CPCA said capacity warning and control is the key lever for high-quality development, aiming to curb blind new projects and duplicated construction at the source.
Industry observers interpret the move as a signal that 'zombie capacity' sheltered by policy may face clearance, while leading firms with technological, brand and integration advantages stand to gain greater resource allocation. The plan also sets a target for NEVs to reach 70% of domestic passenger-vehicle sales and 40% of commercial-vehicle sales by 2030.
Source: Securities Times, CPCA.
