Zhong Guo Qi Che Bao Wang·2025-12-26 11:42Core Viewpoint - The automotive industry is undergoing a regulatory shift to combat "involution" competition, with the release of the "Automotive Industry Price Behavior Compliance Guidelines (Draft for Public Comment)" aimed at standardizing pricing practices and promoting healthy market development [2][10]. Group 1: Industry Response and Impact - Major automotive companies such as BYD, Xpeng Motors, and BAIC Group have responded positively to the guidelines, committing to eliminate price fraud and unfair competition [2][13]. - The guidelines are expected to provide a foundation for the healthy development of the automotive market by addressing long-standing issues of price competition [2][11]. Group 2: Current Market Challenges - The automotive market has faced significant challenges, with 43.5% of dealers reporting losses in 2023, and this figure is projected to remain high in 2024 [3]. - Price undercutting has become a common issue, with 74.4% of dealers experiencing some level of price inversion, leading to financial strain and reduced service quality [3][4]. Group 3: Guidelines Specifics - The guidelines prohibit selling below cost and outline specific pricing behaviors that are deemed unacceptable, such as using discounts and subsidies to manipulate market conditions [5][7]. - The guidelines also emphasize the need for clear and transparent rebate policies from manufacturers to dealers, addressing concerns over complex and lengthy rebate processes [6][7]. Group 4: Regulatory and Compliance Measures - The guidelines call for the establishment of internal price compliance management mechanisms within automotive companies to prevent pricing violations and enhance brand integrity [9]. - There is a focus on ensuring that online automotive sales platforms adhere to pricing regulations to protect consumer rights and maintain fair competition [8][9]. Group 5: Future Outlook - The implementation of the guidelines is expected to lead to a more rational promotional environment, with a decrease in aggressive price-cutting strategies observed in the market [10][11]. - Analysts predict that the guidelines will help restore profitability in the automotive sector, with a potential recovery in dealer margins and overall industry health [11][12].