Regulators have taken action to regulate the car price war, industry profit margin has fallen to 3.9%

In response to the "overlapping" competition in the automotive industry, the China Association of Automobile Manufacturers issued a "Proposal on Promoting Fair Competition Order and Facilitating the Healthy Development of the Industry" on May 31. Subsequently, officials from the Ministry of Industry and Information Technology expressed their support for the initiative and stated that they will intensify efforts to address the overlapping competition in the automotive industry to promote the optimization and adjustment of the industry structure. Price wars directly affect the profits of car manufacturers and dealers. According to statistics from the National Bureau of Statistics, the profit of the automotive manufacturing industry in 2024 was 462.3 billion yuan, a decrease of 8% year-on-year; the profit margin of the automotive manufacturing industry was 4.3%, which is lower than the overall industrial enterprise profit margin of 5.4%. By the first quarter of this year, the profit margin of the automotive manufacturing industry further decreased to only 3.9%.