Zhong Guo Jing Ji Wang·2025-12-29 07:32Core Viewpoint - The Chinese automotive industry is undergoing a significant transformation towards new energy and intelligence, facing intense competition and regulatory scrutiny to ensure healthy development [1] Regulatory Policies and Market Dynamics - The National Market Supervision Administration has solicited opinions on the "Guidelines for Compliance of Price Behavior in the Automotive Industry," which prohibits loss sales, requires clear pricing, and bans price fraud [2] - The introduction of these guidelines aims to curb the detrimental effects of price wars, which have severely impacted industry profitability, with the automotive industry's sales profit margin dropping to 3.9% in October, the lowest in five years [4][6] - The government has emphasized the importance of addressing "involution-style" competition in the 2025 government work report, highlighting a commitment to restoring healthy development in the automotive sector [4] Industry Response to Price Wars - Major automotive companies, including BYD and Great Wall, have pledged to adhere to the pricing guidelines and eliminate unfair competition practices [4] - The China Automotive Industry Association has called for fair competition and has initiated measures to prevent price dumping and misleading advertising [6] Regulatory Interventions and Compliance - A series of regulatory measures have been implemented to address issues such as production consistency and payment terms, with the Ministry of Industry and Information Technology launching checks on production consistency to ensure quality [8][9] - The average accounts payable turnover days for listed automotive companies reached 182 days in 2024, creating significant financial pressure on suppliers [9][11] - A commitment from 17 automotive companies to adhere to a 60-day payment term for suppliers has been established to alleviate financial strain [11] Addressing Network and Marketing Issues - The government has initiated a campaign to combat online misinformation and negative publicity affecting automotive companies, with actions taken against accounts spreading false information [12] - The Ministry of Industry and Information Technology has proposed new standards for intelligent driving systems to enhance safety and consumer protection [14][17] Innovation and Safety Concerns - The automotive industry faces challenges related to "involution" in technological innovation, where companies may compromise safety and quality to reduce costs and accelerate product development [13] - Recent incidents have raised concerns about the safety of new energy vehicles, particularly regarding their acceleration capabilities and the risks associated with hidden door handle designs [15][16] Conclusion on Industry Health - The regulatory environment in 2025 has seen over ten significant policy introductions aimed at addressing competition issues, with a focus on maintaining market order and promoting healthy competition among automotive companies [18][19] - The proactive measures taken by regulatory bodies and the automotive industry indicate a collective effort to navigate the challenges of transformation while ensuring sustainable growth [20]