China has drafted new guidelines to regulate pricing practices in the automotive industry, as fierce competition and rapid model rollouts put pressure on carmakers’ sales strategies.
The State Administration for Market Regulation (SAMR) on Friday released the Guidelines for Price Behavior Compliance in the Automotive Industry for public consultation, with feedback open until Dec. 22. The rules set out compliance requirements for automakers covering the full chain from vehicle and parts production to pricing strategies, promotions and sales practices.
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Under the draft guidelines, automakers would be required to implement end-to-end pricing management systems, covering vehicle sales, financial services and related business activities.
Companies must also standardise promotional practices, ensuring rebate policies are clearly defined and written into contracts, while respecting dealers’ rights to set their own prices.
SAMR said improper pricing behaviour, including selling vehicles below cost, would be subject to penalties.
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The guidelines also stress fair competition, banning price discrimination under equivalent transaction conditions and prohibiting price collusion among vehicle manufacturers and parts suppliers.
The draft rules further address paid feature unlocking in vehicles, requiring manufacturers to clearly disclose free trial periods and fee structures so consumers are fully informed.