Efforts intensify to boost fair practices among automakers

In a bid to foster a healthier competitive landscape, Chinese regulators have called for intensified efforts from players in the automotive sector to combat destructive pricing practices and aim for long-term value.

To address the challenges posed by rampant "cutthroat competition" in the automotive industry, the Ministry of Industry and Information Technology pledged on Saturday to intensify efforts to curb harmful competition and safeguard a fair, orderly market environment, in order to protect consumer rights.

"Cutthroat competition is a form of homogenized competition characterized by low levels of efficiency and effectiveness, " said Luo Zhiheng, chief economist at Yuekai Securities, adding that the phenomenon primarily stems from factors such as supply-demand imbalances and excessive marketing.