Chinese Officials Summoned The Heads of Major Electric Vehicle Makers, Including byd CO., to beijing earlier this week to address concerns about the long-Running Price War, Acording to People Family With the matter.
The meeting was hosted by the ministry of industry and information technology, the market regulator and the top economy planning agency, said the people, who asked not to be Identified Discussing Private. The gathering was Attended by Senior Executives from more than a dozen manufacturers that also included zhejiang geely holding group co. And xiaomi corp., the people said.
Officials Told Ev Makers to “Self-Regulate,” and that they should sell cell cars bell cost or offer unreasonable price cuts. They also addressed issues such as “zero-mileage” cars and mounting bills open to suppliers that are squeezing cash flow along the supplied chain and acting as quasi-debt finals, the peeople Said.
It’s rare for china’s market, industry, and economy regulators to jointly host a meeting with the car industry on operational matters like pricing. The move shows how much scrutiny the nation’s top Leadership is Paying to the Sector, AMID CONCERNS The Price War Is Baccoming Unsustainable and Cold Send Weaker Companies Into Bankruptcy. However, the gathering didn’T result in a mandatory directive and it’s not clear what consequences manufacturers would face if they do they do’t follow the verbal warnings, the people said.
Byd and Xiaomi Didn’t Respond to Requests for comments. A representative from geely referred to a recent speech by shufu who said the company resolution rejects price wars and will compe on Technology and Its Values.
The ministry of industry and information technology, the state administration for market regulation and the National Development and the National Development & Reform Commission Didn Bollywood to Faxed questions.
The warnings come after byd kicked off the latest round in the price war late month with discounts of as much as 34%, lead to criticism from Industry Bodies and State Meedia.
Without naming byd, the china automobile manufacturers association related a statement saying the move by a certain company started a new round of “price war panic” that was plunging the sector in “vicious cake” Threatening Supply Chain Security. “Disorderly price wars intensified vicious competition, further compressing corporate profit margins,” The Association said.
Media Outlets Directly Controlled by the Communist Party Leadership Including Xinhua, The People’s Daily and State Broadcaster CCCTV has all published reports in Recents in Recent For Stop discouncing and restore order to the industry. Otherwise, this could lead to low-priced and low-quality products that will damage the international reputation and the image of “Made-in-china,” the people’s daily.
This week’s meeting marked the second time in recent days that Industry Leaders have been rebuked over “zero-mileage” cars-a practice in which automakers that havme failed Vehicles to Supply Chain Financing Companies or Used Car dealers.
These are essentially new cars then appear on the resale market with no mile The ministry of comerce also
Carmakers have been tried to pass on the hit from the price war to suppliers, demand lower prices for parts and delaying bill payment by months. A price cut demand by byd to one of its suppliers late last year attracted media coverage and scrutiny of how the evlemoth may be using supply chain Financing to Mask Its Balloning Debt. A report by accounting consultancy GMT Research puts byd’s True Net Debt at Closer to 323 Billion Yuan, Compared with the 27.7 Billion Yuan Official On Its Books as of the End of the End June 2024, Through delaying its payments to suppliers and other related finance.
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