The “Guidelines” consist of five chapters and 28 articles, providing clear guidance on pricing practices for automobile manufacturers, pricing practices for automobile sales enterprises, and related system construction.
On December 12, China’s State Administration for Market Regulation released the “Guidelines for Pricing Compliance in the Automotive Industry (Draft for Public Comment)” to solicit public feedback.
An official announcement shows that the “Guidelines,” consisting of five chapters and twenty-eight articles, provide clear guidance mainly on pricing practices for automobile manufacturers, pricing practices for automobile sales enterprises, and system construction.
For automobile manufacturers, the “Guidelines” specify that companies should establish a pricing strategy based on production costs and guided by market supply and demand. They must implement full-chain pricing behavior management covering vehicle sales, financial services, and other related aspects to ensure standardized pricing practices. The “Guidelines” also clearly state that, except for legally reducing prices to clear inventory, automobile manufacturers must not engage in unfair price competition aimed at excluding competitors or monopolizing the market.
Regarding the relationship between automobile manufacturers and dealers, the “Guidelines” indicate that automobile manufacturers should respect the independent pricing rights of dealers and adhere to the principles of fair trade and equal consultation in their collaborations. Manufacturers must not practice price discrimination against dealers or traders with equivalent transaction conditions. The “Guidelines” also highlight the significant legal risks associated with price collusion among automobile manufacturers or auto parts producers and provide clear explanations on regulating charges for “paid unlock features.”
For automobile sales enterprises, the “Guidelines” propose that they should operate with integrity, refrain from using false or misleading pricing tactics to deceive consumers, and ensure “clear pricing marking.” Apart from legally reducing prices to clear inventory, sales enterprises must not engage in unfair pricing practices aimed at excluding competitors or monopolizing the market. They are also prohibited from covertly lowering prices to sell below cost. These measures will significantly promote “price transparency” for automotive products, effectively safeguard the security and stability of the industrial chain, and protect the long-term interests of consumers.
On the day the policy was released, several automakers, including BAIC Group, BYD, XPENG Motors, Chery Automobile, and Great Wall Motors, issued statements expressing their active support for the “Guidelines” and commitment to promoting high-quality development in the industry.
Behind this collective response lies the industry leaders’ expectation for a healthy competitive order.
In recent years, alongside the explosive growth of the new energy vehicle market, the “price war” between traditional automakers and new energy brands has intensified.
Wang Xia, Chairman of the China Council for the Promotion of International Trade Automotive Committee, noted that according to incomplete statistics, there were over 200 vehicle models with price reductions in the domestic automotive market in 2024, and the number reached more than 60 in the first four months of 2025.
In May this year, the trend of “cutthroat pricing” escalated as leading automakers implemented widespread and significant price reductions, prompting many others to follow suit. The number of vehicle models with price cuts reached over a hundred, with the highest reduction exceeding 50,000 yuan. Some vehicles were even priced at around “30,000 yuan.”
Zhu Huarong, Chairman of Changan Automobile, pointed out that the current domestic automotive market suffers from chaotic pricing, a trend that is spreading overseas. For example, the export of “0-kilometer second-hand vehicles” disrupts the market and severely damages the reputation of Chinese brands.
To maintain orderly competition in the industry, on May 31, the China Association of Automobile Manufacturers officially released the “Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development.” This marked the first time authorities explicitly opposed disorderly “price wars” among automakers at the policy level.
As 2025 draws to a close, under the attention and supervision of relevant government departments and industry associations, the “internal competition” in automotive market pricing is stabilizing. According to statistics, in November this year, the number of vehicle models with price reductions in the automotive industry was 19, a decrease of 7 compared to the same period last year. Among them, the number of pure electric vehicle models decreased by 10 year-on-year.
Unlike the simple price intervention in the “Initiative,” the release of these “Guidelines” further guides the industry back to its commercial essence through institutional design.
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