Bei Jing Shang Bao·2025-12-14 09:28Core Viewpoint - The National Market Supervision Administration has released a draft guideline for price behavior compliance in the automotive industry, aiming to regulate pricing practices among manufacturers and sales enterprises, thereby promoting legal and compliant operations within the sector [1][2]. Group 1: Price Behavior Regulations - The draft guideline specifies compliance requirements for price behavior from vehicle production to sales, including the establishment of a comprehensive price management system covering all aspects of sales and financial services [2][3]. - It prohibits price collusion and discrimination among businesses under similar trading conditions, aiming to prevent unfair competition and protect consumer rights [2][3]. - The guideline emphasizes the need for clear pricing strategies based on production costs and market demand, ensuring that pricing practices are transparent and fair [2][3]. Group 2: Sales Practices - The guideline addresses issues in new car sales, mandating accurate price displays and prohibiting misleading promotions and price fraud [4][5]. - It requires that promotional rules and conditions be clearly communicated, and any additional charges must be disclosed to consumers [4][5]. - The guideline aims to enhance price transparency in the automotive market, thereby safeguarding consumer interests and stabilizing the industry [4][5]. Group 3: Internal Compliance Management - The draft encourages automotive enterprises to establish internal price compliance management systems to prevent pricing violations from the source [6][7]. - It outlines six core mechanisms for internal compliance, including price decision-making, contract management, and risk prevention [6][7]. - The guideline promotes a shift from passive compliance to proactive self-discipline within the industry, fostering a cooperative environment among businesses [6][7]. Group 4: Industry Context and Trends - The automotive industry in China has seen record production and sales, yet profit margins have declined from 7.8% in 2017 to 4.3% in 2024, indicating a need for regulatory intervention to combat price wars [8][9]. - The Ministry of Industry and Information Technology is increasing efforts to address "involution" in the automotive sector, which has negatively impacted normal business operations and industry sustainability [9]. - Recent data shows a recovery in the automotive industry's financial performance, with a 7.9% increase in revenue and a 4.4% increase in profit year-on-year, suggesting a stabilization of market conditions [9].