China Urges End to Auto Price Wars Amid Fears of Market Damage
China's Ministry of Industry and Information Technology has urged automakers to stop escalating price wars, warning that such tactics threaten the long-term health and sustainable development of the world’s largest car market, according to a report by Reuters.
The call came after a wave of discounts by major manufacturers reignited competitive tensions across the sector. Electric vehicle giant BYD recently announced fresh incentives on over 20 of its models, prompting rivals like Geely and Chery to respond with similar price cuts. The resulting turmoil has drawn attention from both government regulators and industry associations.
In a statement published on its official WeChat account, the ministry declared, “There are no winners in a price war, let alone a future.” It committed to working with law enforcement agencies to combat unfair practices and enforce regulatory measures aimed at protecting consumers and encouraging high-quality industry development.
The China Association of Auto Manufacturers (CAAM) also echoed the government’s position, issuing a parallel statement calling for a halt to the destructive competition. CAAM warned that continuous price cutting could damage profitability, efficiency, and overall industry morale. It cited recent deep discounts introduced on May 23 by an unnamed automaker as the catalyst for the latest wave of market panic.
Reuters reported that CAAM proposed several corrective actions. These included encouraging companies to abide by principles of fair competition, discouraging monopolistic behavior by larger players, and prohibiting the dumping of goods below cost unless legally sanctioned.
As China’s auto sector races ahead with electrification and innovation, officials and executives now face the added challenge of curbing destabilizing price tactics to ensure the industry’s growth remains both competitive and sustainable.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
