BYD Supports China's Latest Automotive Pricing Regulation to Promote Fair Market Practices

BYD supports the latest regulation on prices/FOTOO: Carnewschina

JAKARTA - BYD delivered an official statement via its public WeChat account regarding car pricing rules. This is in response to the release of the Automotive Industry Price Conduct Compliance Guidelines issued by the State Administration for Market Regulation (SAMR) of China.

In the draft guidelines, it provides guidance to automotive manufacturers and sales companies regarding pricing behavior, institutional frameworks, and compliance practices. The goal is to maintain fair competition, protect consumer rights, and support a healthy and sustainable automotive industry supply chain.

In its statement, BYD confirmed that it would comply with the guidelines and continue to optimize its internal price management and compliance systems. The company also emphasized its commitment to comply with competitive pricing regulations, prevent price fraud, and avoid unfair practices in the market.

Launching Carnewschina, Saturday, December 13, BYD stated that it was ready to set an example for industry players by encouraging a culture of compliance and collaboration between factories. In the future, this guideline has the potential to encourage standardization of prices in various regions and sales channels, thus reducing unreasonable price differences.

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On the other hand, the flexibility of dealers in carrying out local promotions is expected to be more limited. Meanwhile, anti-competitive practices such as price collusion or sudden price increases can be minimized.

The guidelines also emphasize the importance of an institutional framework within the company. Manufacturers are encouraged to build a compliance monitoring and surveillance system, ranging from the formation of a special team, reporting mechanisms, to the use of software to track pricing practices.

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For large manufacturers, this implementation is considered relatively easier, while small companies have the potential to face additional administrative burdens. In addition, the draft guidelines outline compliance practices that include training, supervision, and ongoing reporting.

Standardization of this practice is expected to reduce legal and reputational risks, as well as increase transparency and consumer confidence. Companies that consistently excel in compliance have the opportunity to gain added value in terms of reputation as a trusted brand.

A number of other Chinese car manufacturers, such as Nio, GWM, and Xpeng, have also made similar public statements. This indicates a joint effort at the industry level to adapt to the SAMR guidelines.

A number of analysts assess that, after being finalized, the guidelines will play an important role in organizing the practice of pricing and increasing transparency for consumers in the Chinese automotive market. Given that, recently, all manufacturers are involved in a price war.