A Chinese industry group of automakers has retracted a two-day pledge not to engage in ‘abnormal pricing practices’, previously seen as an effort to end a deadly price war in the electric vehicle market from the country.
The China Association of Automobile Manufacturers is removing one of four pledges signed Thursday by 16 companies at an event it hosted, which pledged to refrain from practices that disrupt fair market competition, it said. she said in a statement. statement posted on its website on Saturday.
The reference to “pricing” in the pledge was inappropriate and in violation of a principle enshrined in the country’s antitrust law, the association said. The retraction came after the clause attracted “widespread attention”, according to the statement.
The association urged the 16 companies and other members to strictly abide by antitrust law and other rules that encourage independent pricing and fair competition.
Tesla Inc. was the only foreign brand among automakers to attend the signing ceremony in Shanghai, committing to a four-point strategy commitment. The companies also included BYD Co., Nio Inc., Xpeng Inc., Geely and Chery Automobile Co.,.
Tesla, based in Austin, Texas, began slashing prices in China late last year, prompting other big brands to join in with deep discounts in early 2023 as sales slowed.
The lagged impact of Covid restrictions and expectations of further price cuts have weakened demand for cars in the world’s second-largest economy. The government has launched a campaign to promote the adoption of electric vehicles in rural areas, among other measures to boost the auto industry and expand consumption.