{"id":346614,"date":"2025-12-16T08:24:26","date_gmt":"2025-12-16T08:24:26","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/china-intensifies-scrutiny-on-car-price-wars-as-discounts-plummet-etbrandequity\/"},"modified":"2025-12-16T08:24:26","modified_gmt":"2025-12-16T08:24:26","slug":"china-intensifies-scrutiny-on-car-price-wars-as-discounts-plummet-etbrandequity","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=346614","title":{"rendered":"China Intensifies Scrutiny on Car Price Wars as Discounts Plummet, ETBrandEquity"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>                    <!-- Display video article in news article for the custom next story --><\/p>\n<p>                    <!-- Modifying the body placing embeds,promoslots,related etc.--><\/p>\n<p>China&#8217;s new restrictions on car discounts signal the government is cranking up its scrutiny of excessive competition in the local auto industry after previous attempts failed to stem falling vehicle prices.<\/p>\n<p><a id=\"31526503\" type=\"General\" weightage=\"20\" keywordseo=\"State-Administration-for-Market-Regulation\" source=\"keywords\" class=\"news-keywords\" href=\"https:\/\/brandequity.economictimes.indiatimes.com\/tag\/state+administration+for+market+regulation\">State administration for market regulation<\/a> announced proposed guidelines late Friday, including measures that would prevent manufacturers from pricing cars below the cost of production, and to stop dealers from offering discounts or rebates that would effectively bring down vehicle prices below cost.<\/p>\n<p><!-- PROMOSLOT_M -->Shares of <a id=\"31105411\" type=\"General\" weightage=\"20\" keywordseo=\"BYD\" source=\"keywords\" class=\"news-keywords\" href=\"https:\/\/brandequity.economictimes.indiatimes.com\/tag\/byd\">BYD<\/a> and other Chinese makers of electric vehicles, who&#8217;ve been relying on discounts to prop up slowing demand, fell on Monday as the move signaled further scrutiny on the industry. Despite China publicly shaming automakers more than six months ago for their &#8220;rat-race competition&#8221; and warning about the financial health of the industry, prices have continued to drop.<\/p>\n<p>It remains to be seen if the new rules will reverse the downturn in car prices, considering one of the biggest causes of the vicious discounting comes from weak demand and car production overcapacity, said Li Yanwei, an adviser to the <a id=\"31526501\" type=\"General\" weightage=\"20\" keywordseo=\"China-Automobile-Dealers-Association\" source=\"keywords\" class=\"news-keywords\" href=\"https:\/\/brandequity.economictimes.indiatimes.com\/tag\/china+automobile+dealers+association\">China Automobile Dealers Association<\/a>. &#8220;Some brands have used economies of scale in their capacity to gain an advantage in the market at this stage, exacerbating the price war,&#8221; he said. More broadly, China&#8217;s clampdown on car prices is part of the government&#8217;s crackdown on &#8220;involution,&#8221; whereby hyper-competition brings diminishing returns.<\/p>\n<p><!-- PROMOSLOT_M -->Meanwhile, average car transaction prices have fallen, with <a href=\"https:\/\/brandequity.economictimes.indiatimes.com\/tag\/byd\">BYD<\/a>&#8216;s slipping from 116,200 yuan ($16,480) in June to 108,100 yuan in October, according to data compiled by <a id=\"779560\" type=\"General\" weightage=\"20\" keywordseo=\"china-auto-market\" source=\"Orion\" class=\"news-keywords\" href=\"https:\/\/brandequity.economictimes.indiatimes.com\/tag\/china+auto+market\">China Auto Market<\/a>.<\/p>\n<p>                    <!-- Category Most Read Placement --><\/p>\n<div class=\"bottom-author-detail-tag\">\n<div class=\"bottom-author-detail\">\n<ul class=\"article-publish-date\">\n                                    <!-- \n\n<li> Updated On Dec 16, 2025 at 12:40 PM IST<\/li>\n\n --><\/p>\n<li>Published On Dec 16, 2025 at 12:40 PM IST<\/li>\n<p>                                    <!-- \n\n<li class=\"desktop-view\">1 min read<\/li>\n\n -->\n                                <\/ul>\n<\/p><\/div>\n<\/p><\/div>\n<p>                    <!-- Comment Section --><\/p>\n<p>                    <!-- Comment Section --><\/p>\n<div class=\"subscription-in-article\">\n<div aria-label=\"Top Newsletter Subscription Section\" class=\"top-newsletter-subs\">\n<div class=\"subscription-section hide\">\n<div class=\"inner-subscription\">\n<p><h2>Join the community of 2M+ industry professionals. <\/h2>\n<h3>Subscribe to Newsletter to get latest insights &amp; analysis in your inbox.<\/h3>\n<\/p>\n<p>            <!-- \n\n<figure class=\"top-newsletter-subs__icon-nl\" role=\"presentation\" aria-label=\"Newsletter icon\">\n                <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/icons\/icon-newsletter.svg\" alt=\"Newsletter icon\" width=\"55\" height=\"55\">\n            <\/figure>\n\n -->\n        <\/div>\n<\/p><\/div>\n<div class=\"app-download-section hide\">\n<div class=\"inner-app-download\">\n<div>\n<h2>All about ETBrandEquity industry right on your smartphone! <\/h2>\n<p>                                            <!-- \n\n<div class=\"app-store-container desktop-view\">\n                            <a href=\"https:\/\/brandequity.economictimes.indiatimes.com\/app\" title=\"\" aria-label=\"Play Store\">\n                                <img decoding=\"async\" loading=\"lazy\" width=\"20\" height=\"20\" src=\"https:\/\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/icons\/icon-g-play.png\" alt=\"\" \/>\n                            <\/a>\n                            <a href=\"https:\/\/brandequity.economictimes.indiatimes.com\/app\" title=\"App Store\">\n                                <img decoding=\"async\" loading=\"lazy\" width=\"20\" height=\"20\" src=\"https:\/\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/icons\/icon-app-store.png\" alt=\"\" \/>\n                            <\/a>\n                        <\/div>\n\n    --><\/p><\/div>\n<figure class=\"download-icon desktop-view\">\n                        <!-- <i><\/i>\n                        <span class=\"scan-text\">Scan to download App<\/span> --><br \/>\n                        <img decoding=\"async\" loading=\"lazy\" width=\"90\" height=\"90\" src=\"https:\/\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/bar-codes\/brandequity_barcode.png?mod=3071\" alt=\"\"\/><br \/>\n                        <!-- <span class=\"border-bottom\"><\/span> --><br \/>\n                    <\/figure>\n<\/p><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>China&#8217;s new restrictions on car discounts signal the government is cranking up its scrutiny of excessive competition in the local auto industry after previous attempts failed to stem falling vehicle prices. State administration for market regulation announced proposed guidelines late Friday, including measures that would prevent manufacturers from pricing cars below the cost of production, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":346615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[98],"tags":[14685,169064,1075,6618,169067,169068,169065,169063,169066,13144,136439,169069,114286,52386,1924,19726,169070,5290],"dealstore":[],"offerexpiration":[],"class_list":["post-346614","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","tag-byd","tag-byd-electric-vehicles","tag-car","tag-china","tag-china-auto-market","tag-china-automobile-dealers-association","tag-china-car-market","tag-china-car-price-war","tag-china-ev","tag-discounts","tag-etbrandequity","tag-government-price-controls","tag-intensifies","tag-plummet","tag-price","tag-scrutiny","tag-state-administration-for-market-regulation","tag-wars"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>China Intensifies Scrutiny on Car Price Wars as Discounts Plummet, ETBrandEquity - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=346614\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China Intensifies Scrutiny on Car Price Wars as Discounts Plummet, ETBrandEquity - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"China&#8217;s new restrictions on car discounts signal the government is cranking up its scrutiny of excessive competition in the local auto industry after previous attempts failed to stem falling vehicle prices. 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