A group of 16 automakers, including Tesla, have committed to maintaining fair market order in China in an attempt to moderate price fluctuations and foster fair competition. The “letter of acceptance for maintaining fair market order in the automobile industry” was signed at the China Association of Automobile Manufacturers (CAAM) in Shanghai, and aims to bring stability to the largest EV market in the world.
The letter includes four key pledges. First, the automakers commit to avoiding disruptions to fair competitive order in the market through abnormal pricing. They also agree not to mislead consumers with exaggerated advertising, to provide high-quality products and services, and to actively fulfilling their social responsibilities.
- 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, not to mislead consumers to attract attention and increase customer acquisition.
- Third, we will put quality first, use quality-oriented, high-quality products and services to meet the 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.
The automakers who signed the agreement, which will be self-regulated and not legally binding, includes major players in the Chinese domestic market, including Tesla, BYD, Nio, Li Auto, Xpeng, China FAW, Dongfeng Motor, SAIC, Changan Automobile, BAIC, GAC, China National Heavy Duty Truck, Chery, JAC, Geely, and Great Wall Motor. (via CNEvPost)
An official from the Ministry of Industry and Information Technology stated that the Chinese auto industry is facing challenges, and regulating sales promotion activities, including avoiding reckless price cuts, is necessary.