In a bid to help maintain a burgeoning market for automobile consumers, a number of manufacturers in China have banded together, committed to regulating how they sell their electric vehicles, and agreed to forgo additional pricing wars in the country.
The China Association of Automobile Manufacturers (CAAM) assisted in facilitating the promise made by 16 significant automakers earlier today at the 2023 China Auto Forum in Shanghai, committing to defend fair market order in their sector.
The promise was signed by CAAM four months after the association called for a market-wide cooling off of price cuts between competitors, especially as automakers began to use marketing strategies to take digs at other companies in the country.
However, it is crucial to remember that this pricing commitment is merely self-regulatory and in no way enforceable. Nevertheless, it demonstrates good faith across a wide range of other EV automakers in China, which ought to help calm price wars outside, at least temporarily.
China FAW, Dongfeng Motor, SAIC Motor, Changan Automobile, BAIC, GAC, China National Heavy Duty Truck, Chery, JAC, Geely, Great Wall Motor, BYD, NIO, Li Auto, XPeng Motors, and Tesla are among the 16 automakers that have signed today.
An excerpt from the commitment letter published by CnEVPost is provided below:
“First, we will abide by the rules and regulations of the industry, regulate marketing activities, maintain a fair competition order, and not disrupt the fair competition order of the market with abnormal prices.
Second, we will pay attention to marketing methods, will not exaggerate or conduct false marketing, and not mislead consumers to attract attention and increase customer acquisition.
Third, we will put quality first and use quality-oriented, high-quality products and services to meet people’s needs for a better life.
Fourth, we will actively fulfill our social responsibility and take an active role in helping to stabilize economic growth, increase confidence and prevent risks, and work together to make a contribution to national economic growth.”
