**Chinese Automakers Retract Pledge to End Pricing War in EV Market**
The China Association of Automobile Manufacturers has retracted a pledge that aimed to put an end to the price war in China’s electric vehicle (EV) market. The industry body, which organized an event where 16 companies signed the pledge, announced on its website that it would remove one of the four commitments made just two days prior. The specific commitment that was taken down promised to refrain from any pricing practices that disrupt fair market competition. The association justified this retraction, stating that the mention of “pricing” in the pledge was inappropriate and violated the principles of the nation’s antitrust law. The decision to retract the commitment followed widespread attention and scrutiny. The association now urges all 16 companies and other members to strictly follow antitrust laws and other regulations that encourage independent pricing and fair competition.
**Tesla, the Only Foreign Brand Among Signatories**
Among the automakers that participated in the signing ceremony in Shanghai, Tesla Inc. was the only foreign brand. The American electric car manufacturer committed to a four-point pledge alongside its Chinese counterparts, including BYD Co., Nio Inc., Xpeng Inc., Geely, and Chery Automobile Co. The pledge was intended to promote fair competition in the EV market. However, Tesla’s involvement is notable as it started cutting prices in China late last year, which then prompted other major brands to follow suit with significant discounts in early 2023. These price cuts were implemented due to slowing sales and the impact of Covid restrictions. Despite its role in the pricing war, Tesla signed the pledge and committed to supporting fair competition.
**Challenges in China’s EV Market and Government Initiatives**
The Chinese government has taken various measures to boost the country’s EV industry and overall consumption. However, the influence of Covid restrictions and the anticipation of further price cuts have weakened car demand, hindering the growth of the world’s second-largest economy. To counter this, the government has initiated campaigns to promote EV adoption in rural areas. These efforts aim to stimulate demand and drive growth in the auto industry.
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**Chinese Automakers Retract Pledge to End Pricing War in EV Market**
The China Association of Automobile Manufacturers has taken back its pledge to refrain from “abnormal pricing practices” in the electric vehicle (EV) market. The industry body organized an event where 16 companies signed a pledge to end the price war in China’s EV market. However, the association has now removed one of the commitments from its website due to its violation of the nation’s antitrust law. The association has urged all companies to strictly abide by the antitrust law and promote fair competition.
**Tesla, the Only Foreign Brand Among Signatories**
Tesla Inc., the American electric car manufacturer, was the only foreign brand among the signatories of the pledge. Despite being involved in cutting prices in China last year, Tesla signed the pledge to support fair competition. Other major Chinese brands, such as BYD Co., Nio Inc., Xpeng Inc., Geely, and Chery Automobile Co., also participated in the signing ceremony.
**Challenges in China’s EV Market and Government Initiatives**
China’s EV market has faced challenges due to Covid restrictions and the anticipation of further price cuts. As a result, car demand has weakened, negatively impacting the economy. In response, the Chinese government has launched campaigns to promote EV adoption in rural areas and implemented measures to support the auto industry and overall consumption.
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