China tries to stop the price war in the electric vehicle market.

Chinese officials have invited leaders of major electric vehicle manufacturers to Beijing to address issues related to the ongoing price war. The meeting included representatives from the Ministry of Industry and Information Technology, the market regulator, and the main economic planning agency.

Present at the meeting were executives from more than a dozen companies, such as Zhejiang Geely Holding Group Co. and Xiaomi Corp. Officials urged electric vehicle manufacturers to self-regulate and warned against selling cars below cost or making unreasonable discounts.

Officials emphasize the importance of the meetings, as the price war could lead to bankruptcies for some companies. Authorities stress the need to develop the sector, as even a price war can be dangerous for enterprises.

Warnings from Chinese authorities

Recently, BYD has initiated a price war, provoking the anger of industry organizations and state media. The China Association of Automobile Manufacturers issued a statement warning about the potential consequences of the price war and the risk to the supply chain due to the vicious cycle that the sector is trapped in.

During the meeting between electric vehicle manufacturers and Chinese officials, issues related to the price war in the sector were discussed. Price restraint is important for the viability of companies, so authorities are urging manufacturers to self-regulate to avoid serious consequences for the industry as a whole.

The Chinese government has made efforts to prevent the escalation of the price war in the electric vehicle sector, urging company leaders to self-regulate and avoid unreasonable discounts. This may help prevent the bankruptcy of enterprises and maintain the stability of the industry as a whole.