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  • Writer's pictureBy The Financial District

China Auto Group Retreats From Vow vs Abnormal Prices

The China Association of Auto Manufacturers, citing antitrust law, on Saturday retracted a pledge to avoid "abnormal pricing" made two days earlier by 16 automakers, including Tesla, Zhang Yan and Brenda Goh reported for Reuters.

Photo Insert: The CAAM-organized pledge by the companies, including Chinese electric vehicle (EV) makers Nio, Li Auto and Xpeng, had been interpreted by some as signaling a truce in a price war that has threatened industry-wide profitability.



Thursday's CAAM-organized pledge by the companies, including Chinese electric vehicle (EV) makers Nio, Li Auto and Xpeng, had been interpreted by some as signaling a truce in a price war that has threatened industry-wide profitability.


But Elon Musk's EV giant Tesla on Friday rolled out a global program letting buyers get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.



In a statement on its website on Saturday, CAAM said it recognized the pricing pledge had violated China's antitrust law and said it would delete it from a list of commitments the automakers had signed, witnessed by an official from the Ministry of Industry and Information Technology.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

CAAM said it would urge the 16 companies and other association members to strictly comply with the antitrust law and compete fairly with independent pricing.





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