The China Association of Automobile Manufacturers (CAAM) has called on automakers to avoid disorderly competition in the booming new energy vehicle (NEV) market. With NEVs now representing over 40% of new car sales, the industry is on a fast track—but not without its bumps! 🚗
CAAM highlights that recent aggressive price cuts, beginning on May 23 by a major carmaker and quickly followed by others, have sparked a wave of price wars. These sharp discounts are squeezing profit margins, impacting service quality, and threatening the stability of both industrial and supply chains.
The association stresses that continuous, smart investment in innovation is key. Companies are urged to steer clear from selling below cost, engaging in deceptive marketing, or any practices that disrupt market order and harm consumer interests. Firms are also encouraged to conduct self-inspections in line with national laws and regulations.
This call for fair competition serves as a vital reminder: sustainable innovation thrives when everyone plays by the rules. Let’s back strategies that foster smart growth over frantic price cuts as we drive toward a dynamic and tech-powered future! 💡
Reference(s):
cgtn.com
