The China Automobile Manufacturers Association has issued a set of critical recommendations to address the ongoing challenges faced by the industry. As of May 31, 2025, the association noted that the new energy vehicle sector has experienced rapid growth, with sales of new energy vehicles surpassing 40% of total car sales. Currently, the market is showing signs of recovery, and demand is gradually increasing.
However, in recent months, competition has intensified, with many companies resorting to aggressive pricing strategies, commonly referred to as the “price war.” This has led to a significant increase in market pressure, particularly affecting the profitability and sustainability of businesses. The association highlighted that companies must focus on enhancing product quality and service offerings to weather this competitive storm.
To navigate these challenges, the association proposed several measures:
- Strict Compliance with regulations and standards to ensure fair competition.
- Avoiding Price Wars to maintain market integrity and prevent detrimental impacts on other businesses.
- Adhering to Pricing Strategies that do not compromise the fundamental value of products and services.
- Proactive Adaptation to government policies and market conditions to foster sustainable growth.
The China Automobile Manufacturers Association emphasized that maintaining a healthy industry environment is crucial for the long-term development of the new energy vehicle sector. The recommendations aim to support businesses in enhancing their operational strategies, ensuring compliance with regulations, and improving their competitive edge in the market.
As the new energy vehicle market continues to grow, with a projected annual increase of over 40% in sales, the association’s recommendations will play a vital role in guiding manufacturers towards a more sustainable and profitable future.
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