Latest news with #pricewar
Bloomberg
3 days ago
- Automotive
- Bloomberg
China Auto Body Slams ‘Vicious Competition' After BYD Price Cuts
China's automobile industry association warned against 'vicious competition,' days after BYD Co. 's price cuts fueled market concerns of a discount war that would further weigh on profits of electric carmakers. After an automaker slashed prices on May 23, many others followed suit, 'triggering a new round of 'price war' panic,' the China Association of Automobile Manufacturers said in a statement on its website Saturday, without naming any company.
Malay Mail
3 days ago
- Automotive
- Malay Mail
Industry group warns Chinese carmakers against aggressive ‘price war' after discount spree, citing market stability concerns
BEIJING, May 31 — A top industry group had a stern rebuke today for automakers fuelling a 'price war', a week after Chinese EV giant BYD announced sweeping trade-in discounts, with multiple competitors following suit. 'Since May 23, a certain automaker has taken the lead in launching a substantial price drop campaign... triggering a new round of 'price war' panic,' the China Association of Automobile Manufacturers (CAAM) said in a statement posted to its WeChat account. The group warned that such 'disorderly' competition would 'exacerbate harmful rivalry' and hurt profit. The statement, dated May 30, did not single out any company by name, but on May 23, BYD announced it was offering big trade-in discounts on nearly two dozen makes, offering discounts of up to 34 per cent. Its cheapest model, the smart-driving Seagull, now goes for a starting price of 55,800 yuan (RM33,200), down from 69,800 yuan, with a trade-in. Days later, Stellantis-backed Chinese EV startup Leapmotor announced similar discounts on two 'entry-level' models through June 8. Geely Auto announced Friday limited-time trade-in subsidies for 10 models, with its X3 Pro going for the lowest starting price of 44,900 yuan. But there is growing domestic criticism against what the autos association called 'involution'—a popular tag used to describe the race to outcompete that ends up nowhere. The CEO of China's Great Wall Motor, whose annual revenue was roughly a quarter of BYD's, compared it to the start of China's years-long housing slump triggered by the 2021 default of property giant Evergrande. 'Evergrande in the auto industry already exists,' Wei Jianjun said this month in an interview with Chinese outlet Sina Finance. 'I hope that... all these years of hard work will not go to waste.' Beijing has poured vast state funds into the electric vehicle sector, supporting the development and production of less polluting battery-powered vehicles. But China's automakers association today warned its goliaths to play fair. 'Leading companies must not monopolise the market,' the CAAM statement said. It added that 'with the exception of lawful discounting, companies must not sell products below cost nor engage in misleading advertising'. Such behaviour disrupted the market and harmed both consumer and the industry, it said. An unnamed official from China's Ministry of Industry and Information Technology added that price wars 'produce no winners and no future', the state-backed Global Times reported today. — AFP
Al Arabiya
3 days ago
- Automotive
- Al Arabiya
Chinese automakers get stern ‘price war' warning after discount spree
A top industry group had a stern rebuke Saturday for automakers fueling a 'price war', a week after Chinese EV giant BYD announced sweeping trade-in discounts, with multiple competitors following suit. 'Since May 23, a certain automaker has taken the lead in launching a substantial price drop campaign... triggering a new round of 'price war' panic,' the China Association of Automobile Manufacturers (CAAM) said in a statement posted to its WeChat account. The group warned that such 'disorderly' competition would 'exacerbate harmful rivalry' and hurt profit. The statement, dated May 30, did not single out any company by name, but on May 23, BYD announced it was offering big trade-in discounts on nearly two dozen makes, offering discounts of up to 34 percent. Its cheapest model, the smart-driving Seagull, now goes for a starting price of 55,800 yuan ($7,800), down from 69,800 yuan, with a trade-in. Days later, Stellantis-backed Chinese EV startup Leapmotor announced similar discounts on two 'entry-level' models through June 8. Geely Auto announced Friday limited-time trade-in subsidies for 10 models, with its X3 Pro going for the lowest starting price of 44,900 yuan. But there is growing domestic criticism against what the autos association called 'involution' -- a popular tag used to describe the race to outcompete that ends up nowhere. The CEO of China's Great Wall Motor, whose annual revenue was roughly a quarter of BYD's, compared it to the start of China's years-long housing slump triggered by the 2021 default of property giant Evergrande. 'Evergrande in the auto industry already exists,' Wei Jianjun said this month in an interview with Chinese outlet Sina Finance. 'I hope that... all these years of hard work will not go to waste.' Beijing has poured vast state funds into the electric vehicle sector, supporting the development and production of less polluting battery-powered vehicles. But China's automakers association on Saturday warned its goliaths to play fair. 'Leading companies must not monopolize the market,' the CAAM statement said. It added that 'with the exception of lawful discounting, companies must not sell products below cost nor engage in misleading advertising'. Such behavior disrupted the market and harmed both consumer and the industry, it said. An unnamed official from China's Ministry of Industry and Information Technology added that price wars 'produce no winners and no future,' the state-backed Global Times reported Saturday.
Yahoo
3 days ago
- Automotive
- Yahoo
Chinese automakers get stern 'price war' warning after discount spree
A top industry group had a stern rebuke Saturday for automakers fuelling a "price war", a week after Chinese EV giant BYD announced sweeping trade-in discounts, with multiple competitors following suit. "Since May 23, a certain automaker has taken the lead in launching a substantial price drop campaign... triggering a new round of 'price war' panic," the China Association of Automobile Manufacturers (CAAM) said in a statement posted to its WeChat account. The group warned that such "disorderly" competition would "exacerbate harmful rivalry" and hurt profit. The statement, dated May 30, did not single out any company by name, but on May 23, BYD announced it was offering big trade-in discounts on nearly two dozen makes, offering discounts of up to 34 percent. Its cheapest model, the smart-driving Seagull, now goes for a starting price of 55,800 yuan ($7,800), down from 69,800 yuan, with a trade-in. Days later, Stellantis-backed Chinese EV startup Leapmotor announced similar discounts on two "entry-level" models through June 8. Geely Auto announced Friday limited-time trade-in subsidies for 10 models, with its X3 Pro going for the lowest starting price of 44,900 yuan. But there is growing domestic criticism against what the autos association called "involution" -- a popular tag used to describe the race to outcompete that ends up nowhere. The CEO of China's Great Wall Motor, whose annual revenue was roughly a quarter of BYD's, compared it to the start of China's years-long housing slump triggered by the 2021 default of property giant Evergrande. "Evergrande in the auto industry already exists," Wei Jianjun said this month in an interview with Chinese outlet Sina Finance. "I hope that... all these years of hard work will not go to waste." Beijing has poured vast state funds into the electric vehicle sector, supporting the development and production of less polluting battery-powered vehicles. But China's automakers association on Saturday warned its goliaths to play fair. "Leading companies must not monopolise the market," the CAAM statement said. It added that "with the exception of lawful discounting, companies must not sell products below cost nor engage in misleading advertising". Such behaviour disrupted the market and harmed both consumer and the industry, it said. An unnamed official from China's Ministry of Industry and Information Technology added that price wars "produce no winners and no future", the state-backed Global Times reported Saturday. mya/fopx
CNA
3 days ago
- Automotive
- CNA
China urges halt to auto industry's bruising price wars
SHANGHAI: China called on Saturday (May 31) for its automotive industry to halt brutal price wars, as a threat to the sector's health and sustainable development, after key executives jousted over pricing pressure following large discounts offered to buyers. Tension between some top players in the world's largest auto market has spilt into the open as competition intensifies, with price wars begun in early 2023 showing little sign of abating, despite concern among both government and industry. The industry ministry vowed to step up efforts to correct what it called excessive competition, the official news agency Xinhua said on Saturday. "There are no winners in a 'price war', let alone a future," the agency cited an unidentified ministry official as saying. The comments came after fresh incentives were offered last week on more than 20 models by electric vehicle giant BYD. This prompted several rivals, such as Geely and Chery, to follow suit. The ministry's comments echo a similar call on Saturday by the China Association of Auto Manufacturers (CAAM) for a truce in the price wars, saying they affect profitability and efficiency. It added that a new round of price war "panic" was touched off in China after substantial discounts were offered on May 23 by an automaker it did not identify. It proposed remedies such as auto companies sticking to the principle of fair competition and larger players refraining from market monopolies. "Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost," it added.
