China Targets 'Irrational' Price War in Electric Vehicle Sector
- tech360.tv
- Jul 17, 2025
- 1 min read
China's cabinet has pledged to rein in what it described as "irrational" competition in the electric vehicle industry, as a prolonged price war continues to disrupt the world's largest auto market.
The announcement followed a cabinet meeting on Wednesday led by Chinese Premier Li Qiang, according to state broadcaster CCTV.
Officials said the government will strengthen cost investigations and price monitoring to address the ongoing pricing battles among automakers.
The cabinet committed to promoting high-quality development in the electric vehicle sector and implementing both short- and long-term measures to curb harmful competition.
No specific details were provided on the planned regulations.
The government will also push major automakers to honour supplier payment terms and support them in enhancing competitiveness through technological innovation and quality improvements.
Industry regulators and executives have previously warned that excessive competition could damage the sector’s long-term sustainability.
Concerns over oversupply remain, with reports indicating that new vehicles have been shipped overseas as "used" since 2019.
In addition to the electric vehicle measures, the cabinet also discussed boosting domestic consumption.
Policymakers said they would remove unreasonable restrictions that limit household spending and improve policies for a consumer goods trade-in programme.
China to regulate pricing in electric vehicle industry amid ongoing price war
Cabinet to enforce cost checks and price monitoring
Automakers urged to honour supplier payments and improve quality
Source: REUTERS
