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Car companies form alliances to cause trouble? Dongfeng, BYD, Tesla and other 16 cars shook hands 48 hours later, the association urgently deleted the "price" clause...

After 48 hours of the 16 car companies "shaking hands and making peace", the CAAM urgently deleted some provisions of the "letter of commitment", which immediately caused controversy.

此前‬,中汽协携一汽、东风、上汽、长安、北汽、广汽、中国重汽、奇瑞、江淮、吉利、长城、比亚迪、蔚来、理想、小鹏、特斯拉联合签署《汽车行业维护公平市场秩序承诺书》。

“不以非正常价格扰乱市场公平竞争秩序”,引发‬争议‬。 What is an abnormal price? Who defines the price?

Car companies form alliances to cause trouble? Dongfeng, BYD, Tesla and other 16 cars shook hands 48 hours later, the association urgently deleted the "price" clause...

8日‬,上述‬条款‬被删除‬,并‬提及‬“自主定价‬”。

其实,承诺书签订当日,一汽-大众就实施ID.家族15.59万起,优惠高‬达8.7万。 #Multiple car companies sign commitment letter to maintain fair market order in the automotive industry# #No price reduction agreement for automobiles#

Car companies form alliances to cause trouble? Dongfeng, BYD, Tesla and other 16 cars shook hands 48 hours later, the association urgently deleted the "price" clause...

On July 8, the China Association of Automobile Manufacturers (hereinafter referred to as "CAAM") issued a statement saying that it had previously organized 16 automobile manufacturers to jointly issue a letter of commitment, aiming to fulfill the obligations of industry associations to maintain fair competition in the market in accordance with Article 14 of the Anti-Monopoly Law, which stipulates that "industry associations shall strengthen industry self-discipline, guide operators in their own industries to compete in accordance with the law, operate in compliance with regulations, and maintain market competition order".

CAAM recognized that the expression "price" in the commitment letter "not to disrupt the order of fair market competition with abnormal prices" refers to "price", which is inappropriate and contrary to the spirit of the Anti-Monopoly Law and has aroused widespread concern.

Car companies form alliances to cause trouble? Dongfeng, BYD, Tesla and other 16 cars shook hands 48 hours later, the association urgently deleted the "price" clause...

The above clauses are hereby deleted from the letter of commitment and urged to 16 other automobile manufacturing member enterprises to strictly abide by the Anti-Monopoly Law and relevant administrative regulations, guidelines and rules, set their own prices, compete fairly, and jointly contribute to the healthy innovation and development of the industry.

On July 6 this year, at the 2023 China Automotive Forum, in order to maintain a good automobile market order, jointly create a good consumption environment, and actively stabilize and promote automobile consumption, under the witness of relevant departments, CAAM, FAW, Dongfeng, SAIC, Changan, BAIC, GAC, Sinotruk, Chery, Jianghuai, Geely, Great Wall, BYD, NIO, Lili, Xpeng, Tesla and other Chinese mainstream automobile enterprises jointly signed the "Commitment to Maintain Fair Market Order in the Automotive Industry" on the spot.

Car companies form alliances to cause trouble? Dongfeng, BYD, Tesla and other 16 cars shook hands 48 hours later, the association urgently deleted the "price" clause...

The contents of the letter of commitment include: first, adhere to abide by industry rules and agreements, regulate marketing activities, maintain the order of fair competition, and not disrupt the order of fair competition in the market at abnormal prices; Secondly, pay attention to marketing and publicity methods and methods, do not exaggerate publicity, do not falsely advertise, and do not attract attention and customers with misleading publicity; In addition, car companies carry forward the craftsmanship spirit of quality first and quality-oriented, and meet people's needs for a better life with high-quality products and high-quality services. Finally, car companies also undertake the task of actively fulfilling their social responsibilities, carry forward the core values of socialism, and make important contributions to the country's stable growth, strong confidence and risk prevention.

After the letter of commitment was signed, many netizens questioned: "The car company is reconciled, no more price wars?" ”

The outside world believes that the signing of the letter of commitment is not unrelated to the market price war in March this year. At the beginning of March this year, Dongfeng Motor's brands were put on the hot search under the joint subsidies of government and enterprises, and then led to a price war, and more than 40 brands participated in the market price competition.

However, the price war between car companies has not improved market sales.

Data show that the retail sales of passenger cars in March this year increased only slightly by 0.3% year-on-year. In this regard, the China Association of Automobile Manufacturers issued a document saying that this round of price reduction speculation should cool down as soon as possible, so that the industry can return to normal operation and ensure the healthy and stable development of the industry throughout the year.

Relevant people from the China Association of Automobile Manufacturers said: "The price war is not a long-term solution, and the auto market should return to normal order as soon as possible." Reducing prices to deal with inventories and properly recovering costs are normal business measures, but they should not be reduced to price wars. Price wars don't last long, and value for money is an eternal business rule. ”

However, the pledge "adhere to the rules and regulations, regulate marketing activities, maintain the order of fair competition, and not disrupt the order of fair competition in the market with abnormal prices" caused controversy.

What is an abnormal price? Who defines the price?

In the eyes of industry insiders, the signing of the "letter of commitment" does not guarantee price stability, and vehicle manufacturers and dealers will still adjust prices according to changes in market factors.

The reporter noted that on the day the letter of commitment was signed, "North and South Volkswagen" adjusted prices for their respective ID. brand models. Among them, FAW-Volkswagen announced that the ID. family models will start from 155,900 yuan, with a maximum discount of 87,000 yuan. In addition to the Volkswagen brand, on July 7, Tesla announced that the Model 3/Y referral reward was upgraded, and if a friend was successfully introduced to order and pick up the car, the car buyer could get a 3,500 yuan referral reward (deducting the final payment), an enhanced automatic driving assistance function (EAP) 90-day free trial right, and the referrer could enjoy a 7,000 point reward.

来源‬|北京商报 刘洋 刘晓梦 图片‬|中‬汽车协‬

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