BEIJING, Feb 12 (Reuters) - China's market watchdog on Thursday released guidelines for the auto industry aimed at regulating pricing behaviour, curbing price wars and preventing unfair competition.
China Implements New Pricing Rules and Safety Standards for Auto Industry
China's New Automotive Regulations
BEIJING, Feb 12 (Reuters) - China released new guidelines to regulate pricing behaviour for the automotive sector and outlined draft safety standards on Thursday, marking the latest effort to curb price wars and safeguard the industry's value and quality.
Guidelines for Pricing Behaviour
The State Administration for Market Regulation (SAMR) introduced guidelines targeting practices such as failure to display prices transparently and deceptive promotions by automakers, parts suppliers, and dealers involved in car production and sales.
Draft Safety Standards
Separately, China's Ministry of Industry and Information Technology issued draft standards on automated driving systems, brake assistance systems and vehicle control components as part of efforts to strengthen vehicle safety regulation.
Impact on the Auto Industry
Ensuring public safety and improving societal welfare "far outweigh the short-term cost increases for enterprises," the ministry stated.
China's auto industry, the world's largest, faces rising pressure as demand is expected to stagnate this year while a years-long price war hurts profitability.
Since early 2025, Chinese authorities have ramped up efforts on a so-called "anti-involution" campaign to put an end to aggressive price cuts. Regulators intensified crackdowns on alleged unfair pricing practices and misleading advertising, while raising safety standards for vehicle tests and batteries, intending to restore consumer confidence.
Analysts at Chinese industry groups have praised the measures, noting they have shifted the market's focus from pricing tactics to value-based competition.
"The new guideline promotes orderly competition and rational development within the industry while advancing high-quality growth," said Cui Dongshu, secretary-general at the China Passenger Car Association.
Losses in China's auto industry fell significantly in the second half of 2025 as a result of the regulatory moves, according to Li Yanwei, an analyst with the China Automobile Dealers Association.
(Reporting by Ethan Wang, Ryan Woo and Shanghai Newsroom; Editing by Christopher Cushing, Saad Sayeed, Philippa Fletcher)
