--- title: "CAAM urges end to price war in China's auto industry" description: "The China Association of Automobile Manufacturers (CAAM) has called for an end to the ongoing price war in China's auto industry, warning that it intensifies unhealthy competition and squeezes corpora" type: "news" locale: "en" url: "https://longbridge.com/en/news/242664226.md" published_at: "2025-05-31T00:53:22.000Z" --- # CAAM urges end to price war in China's auto industry > The China Association of Automobile Manufacturers (CAAM) has called for an end to the ongoing price war in China's auto industry, warning that it intensifies unhealthy competition and squeezes corporate profit margins. CAAM highlighted that this situation undermines supply chain security and could lead to a vicious cycle affecting product quality and consumer rights. The association urged companies to adhere to fair competition principles and avoid practices that harm the industry. CAAM proposed initiatives to ensure compliance with laws and regulations, emphasizing the need for self-inspection among companies. > - Unregulated price wars intensify unhealthy competition and further squeeze corporate profit margins, CAAM warned. > - This also undermines the security of the supply chain, driving the industry into a vicious cycle. A major Chinese automotive industry association has urged an end to price war to prevent the industry from entering a rat race. Since May 23, "a certain automaker" has led the way with significant price cuts, prompting other companies to follow suit, sparking new concerns about a price war, according to a statement released today by the China Association of Automobile Manufacturers (CAAM). Unregulated price wars have intensified cutthroat competition, further squeezing corporate profit margins, which in turn affects product quality and after-sales service guarantees, the statement said. This not only hinders the industry's healthy development but also harms consumer rights and poses safety risks, CAAM said. CAAM did not mention the name of the automaker, but it is clearly BYD (HKG: 1211, OTCMKTS: BYDDY), which announced sweeping discounts on dozens of models on May 23, prompting competitors including Chery and Leapmotor (HKG: 9863) to follow suit. In recent years, China's new energy vehicle (NEV) industry has developed rapidly, accounting for over 40 percent of new vehicle sales, CAAM's statement noted. "Currently, the industry as a whole is showing a stable and positive trend, with market vitality continuing to be released." However, in recent times, the industry's profitability has declined, with race-to-the-bottom competition characterized by disorderly price wars being a key factor in the decline in industry performance, the statement said. CAAM emphasized that investments in product after-sales service guarantees and corporate innovation and development should be continuously increased, while price wars severely impact normal business operations. This also undermines the security of the industrial chain and supply chain, pushing the industry into a vicious cycle, CAAM warned. CAAM put forward four initiatives to safeguard the development of China's automotive industry: > 1\. All enterprises must strictly adhere to the principle of fair competition and conduct business operations in accordance with laws and regulations. > > 2\. Leading companies should not monopolize the market, squeeze out other players, or harm the legitimate rights and interests of other industry players. > > 3\. When companies legally reduce prices to clear inventory, they should not sell goods below costs. They should not engage in false advertising that misleads consumers, disrupt market order, or harm the fundamental interests of the industry and consumers. > > 4\. All companies should conduct self-inspections and rectifications in accordance with relevant national laws and regulations. BYD offers wide-ranging price discounts, raising price war risk in China Analysts believe BYD's price discounts could lead to further price competition in China and spark more rivals to follow suit. ### Related Stocks - [AUTO.UK - Auto Trader Group PLC](https://longbridge.com/en/quote/AUTO.UK.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | AutoTrader 警告，到 2027 年，5 至 7 年車齡的二手車數量將大幅下降 | AutoTrader Group plc 報告稱，2026 年英國二手車市場開局強勁，但警告到 2027 年 5-7 年車齡車輛的供應可能會下降 35%。建議經銷商調整策略，更加註重數據分析，以保持成功 | [Link](https://longbridge.com/en/news/275302903.md) | | AutoTrader 表示，標緻 E-208 被評為 2025 年英國銷售速度最快的二手車 | AutoTrader 的分析顯示，標緻 E-208 是 2025 年英國銷售最快的二手車，僅需 17 天即可售出。電動車在市場上表現突出，平均銷售時間為 37 天，而二手車的整體平均銷售時間為 31 天。報告強調了供應動態的變化，較舊的車輛 | [Link](https://longbridge.com/en/news/273196238.md) | | Klement 表示，ROI-歐洲不受歡迎的汽車行業可能會在 2026 年給投資者帶來驚喜 | 根據投資策略師 Joachim Klement 的説法，歐洲汽車行業在經歷了兩年的低迷表現後，預計到 2026 年將迎來轉機。分析師預測，利潤壓力將減輕，Stoxx Europe 600 汽車及零部件指數的每股收益將增長 5%。投資者情緒正 | [Link](https://longbridge.com/en/news/272227823.md) | | Auto Trader 警告稱，財富差距阻礙了低收入家庭進入電動車市場 | Auto Trader Group plc 的《2026 年無司機被落下報告》強調了英國電動車（EV）市場中的財富差距，指出可負擔性問題阻礙了低收入家庭（年收入低於 40,000 英鎊）向電動車的過渡。只有 48% 的低收入家庭會考慮購買電 | [Link](https://longbridge.com/en/news/272538723.md) | | 巴西汽車銷量和生產預計將在 2026 年上升，協會表示 | 巴西的汽車銷售預計在 2026 年增長 2.7%，達到 276 萬輛，而生產預計增長 3.7%，達到 274 萬輛。汽車製造商協會 Anfavea 還預測，今年出口將增長 1.3%，達到 536,000 輛。12 月份，汽車銷售環比激增 1 | [Link](https://longbridge.com/en/news/272712012.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.