Recently, the State Administration for Market Regulation unveiled the Compliance Guidelines for Pricing Practices in the Automotive Industry (Draft for Public Comments), inviting public input. The deadline for submitting feedback is set for December 22, 2025. These guidelines are designed to standardize pricing behaviors within the automotive sector, uphold market price stability and fair competition, protect the lawful rights and interests of both consumers and operators, and foster the industry's high-quality growth. The guidelines explicitly outline that automotive manufacturers should formulate pricing strategies grounded in production costs and shaped by market supply and demand dynamics. They should also implement comprehensive price management across vehicle sales, financial services, and other relevant areas. Apart from legally permitted price reductions to clear excess inventory, automotive producers that resort to tactics such as rebates, discounts, subsidies, under-invoicing while shipping more goods, or other concealed price cuts with the intent to drive out competitors or monopolize the market, thereby causing actual factory prices to dip below production costs, will encounter substantial legal repercussions.
