16 Car Companies Face Controversy Over “Price War” Commitment
Hangzhou, China – In a move that has sparked controversy, 16 major car companies recently made a commitment not to engage in a “price war” in the automobile industry. However, the China Association of Automobile Manufacturers is now calling for the deletion of this clause, stating that it violates the spirit of the “Anti-Monopoly Law”.
The China Association of Automobile Manufacturers released a statement on July 6, announcing that they organized a group of 16 automobile manufacturers to sign the “Letter of Commitment to Maintain a Fair Market Order in the Automobile Industry”. The association acknowledged that the commitment to not disrupt fair market competition with abnormal prices is improper and goes against the principles of the Anti-Monopoly Law.
The 16 car companies, including well-known brands such as BYD, Tesla, Weilai, and Ideal, had jointly signed the commitment at the 2023 China Auto Forum hosted by the China Automobile Association. The aim of the commitment was to ensure fair competition in the market and prevent any practices that would harm the industry’s stability.
However, the China Association of Automobile Manufacturers is now urging for the removal of the clause related to pricing in the commitment. According to the association, independent pricing and fair competition should be upheld by all member companies in adherence to the Anti-Monopoly Law and other relevant regulations and guidelines. Deleting this clause would align the commitment with legal obligations and contribute to the healthy and innovative development of the industry.
The controversy surrounding this commitment highlights the ongoing struggles in the automobile industry to strike a balance between fair competition and maintaining stable market conditions. With consumers expecting competitive prices and car companies striving for profitability, finding the right equilibrium remains a challenge.
The China Automobile Association’s call to delete the pricing clause in the commitment will likely spark debate among industry leaders and regulatory bodies. It remains to be seen whether the car companies will amend their commitment as per the association’s request.
As the automobile industry continues to evolve and face new challenges, it is crucial for all stakeholders to ensure that fair market competition is upheld while also fostering innovation and growth.