Senior executives of several Chinese EV makers were summoned to Beijing to “self-regulate”, Bloomberg reported.
“A certain automaker has taken the lead in launching significant price cuts and plenty of corporations have followed suit, triggering a brand new round of ‘price competition’ panic,” in line with an announcement issued by the China Association of Automobile Manufacturers, sighted by CNBC.
The associated warned of further pressure on profit margins and consumer safety risks, and called for corporations to abide by fair competition and never monopolise the market or dump stock at prices below production cost, CNBC reported. The association’s comments were geared toward BYD, which rolled out the newest round of discounts in May when one among its models received a price cut of greater than 30%.
The minister of industry and data technology of China said that it is going to increase regulation of non-productive competition, and cooperate with other departments to implement laws to advertise fair competition, in line with the report.
Meanwhile, Geely CEO Li Shufu has stated that the automotive industry is facing “serious overcapacity”, and the automaker has decided to not construct latest manufacturing plants or increasing production from existing facilities, reported Reuters.
The claimed overcapacity come after Chinese carmakers have been involved in a price competition, and an instance of Geely’s involvement was when the Geely EX5 became heavily discounted in Thailand earlier this yr.
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This Article First Appeared At paultan.org
