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China's auto group retracts pledge to avoid 'abnormal pricing'

Published 07/08/2023, 01:53 AM
Updated 07/08/2023, 01:56 AM
© Reuters. FILE PHOTO: Cars drive on the road during the evening rush hour in Beijing, China, July 1, 2019. Picture taken July 1, 2019. REUTERS/Jason Lee/File Photo

SHANGHAI (Reuters) - The China Association of Auto Manufacturers (CAAM), citing antitrust law, on Saturday retracted a pledge to avoid "abnormal pricing" made two days earlier by 16 automakers, including Tesla (NASDAQ:TSLA)..

Thursday's CAAM-organised pledge by the companies, including Chinese electric vehicle (EV) makers Nio (NYSE:NIO), Li Auto and Xpeng (NYSE:XPEV), had been interpreted by some as signalling a truce in a price war that has threatened industry-wide profitability.

But Elon Musk's EV giant Tesla on Friday rolled out a global programme letting buyers get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

In a statement on its website on Saturday, CAAM said it recognised the pricing pledge had violated China's antitrust law and said it would delete it from a list of commitments the automakers had signed, witnessed by an official from Ministry of Industry and Information Technology.

CAAM said it would urge the 16 companies and other association members to strictly comply with the antitrust law and compete fairly with independent pricing.

Latest comments

The fierce competition for NEVs in China has led to price war that is a positive new for the charging industry, as the more trams are sold, the greater the demand for charging in the future. And the leader in China charging field, NAAS (NASDAQ: NAAS) is expected to enjoy the dividends of charging market.
I smell BS
khoyrul Amin
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