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Govt summons carmakers over irrational competition

By Ma Si | chinadaily.com.cn | Updated: 2026-06-11 20:47
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A woman learns about a new energy vehicle at a car dealership in Tancheng county, Linyi city, East China's Shandong province, April 10, 2026. [Photo/Xinhua]

China's Ministry of Industry and Information Technology and the State Administration for Market Regulation summoned on Thursday automobile manufacturers suspected of engaging in irrational competitive practices for a regulatory talk and reminder, according to an official statement.

The two ministries urged the companies to strictly abide by relevant laws and regulations, the statement said.

The summoned companies were required to strengthen pricing compliance, tighten product quality controls, and effectively protect consumers' legitimate rights and interests, while working collectively to safeguard a market order featuring high quality at fair prices and healthy competition, the statement added.

The move comes amid growing regulatory scrutiny over price wars that have eroded profitability across China's auto sector, the world's largest vehicle market. Industry data showed that the sector's profit margin fell to 3.2 percent in the first quarter of 2026 and well below the average for downstream industries.

The ministry and SAMR did not disclose the names of the automakers summoned or specify what particular conduct triggered the regulatory action. Industry analysts said the summons serves as a warning to the entire sector, signaling that regulators are prepared to move decisively against behaviors that undermine long-term industry health in pursuit of short-term market share.

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