Nan Fang Du Shi Bao·2025-07-17 03:12Core Viewpoint - The Chinese government is taking measures to regulate the competitive order in the electric vehicle (EV) industry to promote high-quality development and address irrational competition [1][3]. Group 1: Government Actions - The State Council, led by Premier Li Qiang, emphasized the need for comprehensive measures to regulate competition in the EV sector [1]. - The Ministry of Industry and Information Technology (MIIT) has initiated inspections to ensure production consistency and compliance with national standards, targeting companies that fail to meet these requirements [3]. - A new online platform has been launched to monitor major car manufacturers' adherence to their payment commitments, addressing long-standing issues related to payment terms [3]. Group 2: Industry Challenges - The EV industry is experiencing intensified competition, leading to supply-demand imbalances and a phenomenon referred to as "involution" [3]. - The automotive sector's revenue grew by 7% from January to May, but profits fell by 11.9%, indicating a significant decline in profitability [4]. - The inventory warning index for automotive dealers was reported at 56.6%, showing a year-on-year decrease but a month-on-month increase, suggesting a decline in market conditions [4]. Group 3: Industry Responses - Executives from various automotive companies, including Lantu and Seres Group, have publicly supported the need for a fair and orderly market environment, emphasizing the importance of brand building, technological innovation, and product quality [4]. - Geely's senior vice president described "involution" as a form of destructive competition and called for mutual respect and supervision among industry peers [5]. - Following the government's regulatory actions, there has been a positive response in the stock market, with several automotive stocks experiencing gains [5].