The statement in the pledge, "not to disrupt the fair competition order of the market with abnormal prices," was inappropriate and inconsistent with the principles of China's anti-monopoly law, the CAAM said.
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These car companies have pledged to regulate their marketing activities and not to disrupt the order of fair competition in the market with abnormal prices.
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More than 10 car companies, including major electric vehicle (EV) startups, have pledged to jointly maintain a fair market order in China's auto market, at a time when the EV industry is growing rapidly.
At the 2023 China Auto Forum in Jiading, Shanghai, today, the China Association of Automobile Manufacturers (CAAM) and 16 major automakers signed a pledge to uphold fair market order in the automotive industry.
This is to maintain a good auto market order, jointly create a good consumer environment, and actively stabilize and promote auto consumption, they said at the conference.
The car companies that signed the commitment include:
China FAW, Dongfeng Motor, SAIC, Changan Automobile, BAIC, GAC, China National Heavy Duty Truck, Chery, JAC, Geely, Great Wall Motor, BYD, Nio, Li Auto, Xpeng, and Tesla.
The following is the main content of the commitment letter:
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.
It should be noted that the commitment is self-regulatory and not legally binding, and it was signed after the price war at the beginning of the year and the emergence of a war of words between several EV companies and their supporters.
Since early March, a rare price war has erupted in China's auto industry, which has not boosted sales but has instead triggered a wait-and-see mood among consumers, resulting in car sales not seeing an increase.
On March 22, the CAAM called for the hype about price cuts in China's auto industry to cool down to return the industry to normal operation and ensure healthy and stable development of the industry throughout the year.
After that, the price war in China's auto industry gradually subsided.
It is worth noting that although these car companies pledged today not to disrupt the fair order with abnormal prices, it does not mean that they cannot cut prices when facing future challenges.
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China's auto industry still needs to further recover and expand demand, and the release of consumption potential needs to be accelerated, the CAAM said.
China's new energy vehicle (NEV) sales in May were 717,000 units, up 60.2 percent year-on-year and up 12.74 percent from April, according to data released today by the China Association of Automobile Manufacturers (CAAM).
The CAAM released data on wholesale sales by automakers, where NEVs include battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs) and fuel cell vehicles.
China sold 522,000 BEVs in May, up 50.43 percent year-on-year and up 10.83 percent from April.
PHEV sales were 194,000 units in May, up 94.4 percent year-on-year. Sales of fuel cell vehicles were 400 units, up 310.7 percent year-on-year.
All vehicle sales in China were 2,382,000 in May, up 27.9 percent year-on-year and up 10.3 percent from April.
This means that China's NEVs had a penetration rate of 30.1 percent in May, up from 29.5 percent in April.
Production of NEVs in China was 713,000 units in May, up 53 percent year-on-year and 11.4 percent from 640,000 units in April.
Production of all vehicles in China was 2.333 million units in May, up 21.1 percent year-on-year and up 9.4 percent from May.
Both auto production and sales in China saw year-on-year growth in May, with NEVs continuing their rapid growth, the CAAM said.
However, the auto industry is still operating under great pressure, and the profitability of industry enterprises is at a low level, the CAAM noted.
From the current perspective, China's auto industry still needs to further recover and expand demand, and the release of consumption potential needs to be accelerated to drive steady growth in the industry, the CAAM said.
In May, 389,000 vehicles were exported from China, up 58.7 percent year-on-year and up 3.4 percent from April.
Among them, exports of NEVs were 108,000 units, up 150 percent year-on-year and up 7.9 percent from April.
In January-May, China's auto sales were 10.617 million units, an increase of 11.1 percent from the same period last year.
NEVs sold 2.94 million units in January-May, up 46.8 percent year-on-year, with a market share of 27.7 percent.
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Irrational promotions in China's auto market since March have led to consumer wait-and-see, so auto consumption is still in a slow recovery process, the CAAM said.
China's new energy vehicle (NEV) sales in April were 636,000 units, up 112.71 percent year-on-year, but down 2.6 percent from March, according to data released today by the China Association of Automobile Manufacturers (CAAM).
The CAAM's data are wholesale sales for automakers, where NEVs include battery electric vehicles (BEVs), plug-in hybrids (PHEVs) and fuel cell vehicles.
China sold 471,000 BEVs in April, up 103.7 percent year-on-year but down 3.9 percent from March.
PHEV sales were 165,000 units, up 144.5 percent year-on-year. Sales of fuel cell vehicles were 300 units, up 222.3 percent year-on-year.
All vehicle sales in China were 2.159 million units in April, up 82.7 percent year-on-year but down 11.9 percent from March.
This means that China's NEVs had a penetration rate of 29.5 percent in April, up from 26.6 percent in March.
Production of NEVs in China was 640,000 units in April, up 110 percent year-on-year, but down 5 percent from 674,000 units in March.
Production of all vehicles in China was 2.133 million units in April, up 76.8 percent year-on-year and 17.5 percent lower than in March.
China's auto production and sales saw a significant year-on-year increase in April, but this was mainly due to a low base in the same month last year, the CAAM noted.
Irrational promotions in the Chinese auto market since March have led to consumer wait-and-see, so auto consumption is still in a slow recovery process, the CAAM said.
In addition, production and sales in China's auto industry fell in April compared to March amid adverse factors including a slower-than-expected recovery in the commercial vehicle industry, according to the CAAM.
With the current downward pressure on China's economy increasing and aggregate demand still insufficient, the stable operation of the auto industry needs the support of effective policies, the CAAM said.
In April, exports of vehicles from China were 376,000 units, up 170 percent from a year earlier up and 3.3 percent from March.
Among them, the export volume of NEVs was 100,000 units, up 840 percent year-on-year, down 28.6 percent from March.
In January-April, China's auto sales were 8.235 million units, up 7.1 percent from a year earlier.
NEVs sold 2.222 million units in January-April, up 42.8 percent year-on-year, with a market share of 27 percent.
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The CAAM proposes that China's central and local governments continue to introduce policies to promote auto consumption, given the current weak market expectations.
China's new energy vehicle (NEV) sales in March were 653,000 units, up 34.8 percent year-on-year and up 24.4 percent from February, according to data released today by the China Association of Automobile Manufacturers (CAAM).
The CAAM released data on wholesale sales by automakers, where NEVs include battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs) and fuel cell vehicles.
China saw BEV sales of 490,000 units in March, up 23.8 percent year-on-year. PHEV sales were 163,000 units, up 84.3 percent year-on-year. Sales of fuel cell vehicles were 50 units, up 27 percent year-on-year.
Sales of all vehicles in China were 2.451 million units in March, up 9.7 percent year-on-year and up 24 percent from February.
This means that China's NEVs had a penetration rate of 26.6 percent in March, the same as in February.
Production of NEVs in China was 674,000 units in March, up 44.8 percent year-on-year and up 22.1 percent from February.
Production of all vehicles in China was 2,584,000 units in March, up 15.3 percent year-on-year and 27.2 percent from February.
With purchase tax incentives for internal combustion engine vehicles and purchase subsidies for NEVs both expiring at the end of last year, coupled with price cuts since the beginning of the year, China's auto industry faced significant pressure in the first quarter, the CAAM said.
The CAAM proposes that China's central and local governments continue to introduce policies to promote auto consumption, given the current weak market expectations.
In March, exports of vehicles from China were 364,000 units, up 110 percent from a year earlier and up 10.6 percent from February.
Among them, the export volume of NEVs was 78,000 units, up 390 percent year-on-year but down 10.3 percent from February.
In January-March, China's vehicle sales were 6.076 million units, down 6.7 percent from a year earlier, according to the CAAM.
NEVs sold 1.586 million units in January-March, up 26.2 percent year-on-year, with a market share of 26.1 percent.
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In January-February, China's vehicle sales decreased by 15.2 percent year-on-year while NEV sales increased by 20.8 percent year-on-year.
China saw new energy vehicle (NEV) sales of 525,000 units in February, up 55.9 percent year-on-year and up 28.7 percent from January, according to data released today by the China Association of Automobile Manufacturers (CAAM).
The CAAM figures are wholesale sales by vehicle companies, where NEVs include battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs) and fuel cell vehicles.
China generated sales of 376,000 BEVs in February, up 43.9 percent year-on-year. PHEV sales were 149,000 units, up 98.0 percent year-on-year. Sales of fuel cell vehicles were 40 units, down 77.5 percent year-on-year.
Sales of all vehicles in China were 1.976 million units in February, up 13.5 percent year-on-year and up 19.83 percent from January.
This means that the penetration rate of NEVs in China by the CAAM figures was 26.6 percent in February, up 1.9 percentage points from 24.7 in January.
Production of NEVs in China was 552,000 units in January, up 48.8 percent year-on-year and up 29.9 percent from January.
Production of all vehicles in China in January was 2,032,000 units, up 11.9 percent year-on-year and 27.5 percent from January.
It is worth noting that last year, February 1-6 was the New Year's holiday, which caused disruptions to sales and production at that time. This year, that holiday was January 21-27.
Because the Chinese New Year holiday fell in the same month last year and in January this year, and some local governments introduced policies to boost auto consumption last month, China's auto production and sales increased significantly in February, the CAAM said.
In February, 329,000 vehicles were exported from China, up 82.2 percent year-on-year and up 9.4 percent from January.
Among them, exports of NEVs were 87,000 units, up 79.5 percent year-on-year and up 5.3 percent from January.
In January-February, China's vehicle sales were 3.625 million units, down 15.2 percent from a year earlier, according to the CAAM.
NEVs sold 933,000 units in January-February, up 20.8 percent year-on-year, with a market share of 25.7 percent.
In the first two months, sales of models priced at RMB 150,000 ($21,540) to RMB 250,000 and those priced at RMB 350,000 to RMB 500,000 increased year-on-year, while sales of models in other price segments declined.
For conventional internal combustion engine vehicles, sales of models in the price range of RMB 300,000 to RMB 350,000 increased year-on-year in January-February, while sales of models in all other price ranges declined.
($1 = RMB 6.9624)
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