- The guidelines outline pricing conduct standards for car manufacturers, clarifying pricing strategy and sales behavior compliance requirements.
- Improper pricing practices, including selling below cost, will be penalized.
China has drafted new guidelines to regulate automakers’ pricing practices amid the rapid rollout of new models and intensifying market competition.
China’s State Administration for Market Regulation (SAMR) today released the «Guidelines for Price Behavior Compliance in the Automotive Industry» for public comment, with feedback accepted until December 22.
The guidelines outline pricing conduct standards for automotive manufacturers, specifying compliance requirements various aspects — from vehicle and parts production to pricing strategies and sales practices.
Automakers are required to implement end-to-end pricing management, establishing comprehensive systems covering vehicle sales, financial services, and other related processes.
Automakers must regulate promotions and pricing practices, ensuring rebate policies are clearly defined and documented in contracts, while respecting dealers’ autonomous pricing rights.
Improper pricing practices, including sales below cost, will be penalized.
The guidelines emphasize fair pricing, prohibiting price discrimination against operators under equivalent transaction conditions and banning price collusion among manufacturers and parts suppliers.
Regarding vehicle features requiring paid unlocking, the guidelines require manufacturers to disclose free trial periods and fee structures to ensure consumer awareness.
