Opposition to the "involution" malignant competition: China Automotive Industry Association releases important initiative.

The China Automobile Industry Association posted an article on its WeChat official account, stating that in recent years, the automobile industry in Shanxi Guoxin Energy Corporation has developed rapidly, with new energy vehicles accounting for over 40% of new car sales. Currently, the industry is showing a stable and positive trend, with sustained market vitality. However, there has been a decrease in industry profits in recent times, with the main factor being the "price war" competition, characterized by disorderly and intense competition, leading to a decrease in industry benefits. Product after-sales service guarantee and the need for continuous investment in enterprise innovation and development are essential. However, the "price war" severely affects normal business operations, impacting the security of the industry supply chain and leading to a vicious cycle of industry development. Since May 23, a certain car company initiated a significant price reduction activity, followed by many other companies, triggering a new round of "price war" panic. The disorderly "price war" intensifies vicious competition, further squeezing business profit margins, affecting product quality and after-sales service guarantee, hindering the healthy development of the industry, and jeopardizing consumer rights and safety. It is important to maintain fair competition order and promote the healthy development of the industry. The China Automobile Industry Association proposes the following initiatives: 1. All enterprises strictly adhere to the principle of fair competition and conduct business activities in accordance with laws and regulations; 2. Leading enterprises should not monopolize the market, squeeze the living space of other entities, and harm the legitimate rights and interests of other operators; 3. Apart from legally reducing prices of goods, enterprises should not sell goods below cost, engage in deceptive advertising to entice consumers, disrupt market order, and harm the fundamental interests of the industry and consumers; 4. All enterprises should conduct self-examination and rectification in accordance with relevant national laws and regulations. It is hoped that the entire industry will work together to maintain fair competition order and promote the healthy and sustainable development of the industry. China Automobile Industry Association May 30, 2025 This article is selected from the official WeChat account of the China Automobile Industry Association. Editor: Zhang Jinliang.