The Chinese Car Association warns about the intensification of competition after "bed" discounts

The Chinese Automobile Manufacturers Association has warned against a fierce competition outbreak ‘days after the atd company announced the price of its cars, which raises the market concerns about the outbreak of a new discount war that exacerbates the pressure on the gains of electric car manufacturers. The league explained in a statement on its website on Saturday that one of the car manufacturers lowered its prices on May 23, which asked many other companies to follow its example, which “a new wave of panic is related to price war”, without announcing the name of the business concerned. The association said that “the chaotic price wars are exacerbated by fierce competition, which increases the pressure on corporate profits margins.” Added that this situation “negatively reflects the quality of the product and the guarantees of the selling services, which impedes the right growth of the industry and also exposes consumer rights and safety requirements.” At the time, its car figures reduced 34%, which led to the decline in its shares and shares of other electric car manufacturers. In the same context, the competitive company this week ‘Li Auto’ expected its revenue to come to the second quarter without estimates, amid the poor request of consumers. In light of these developments, the association has called on all car manufacturers to meet the principles of ‘fair competition’, and to avoid monopolistic practices that can harm the interests of other businesses while refraining from selling cars at less than production costs.