BYD issued an official statement on its WeChat public account responding to the release of the Automobile Industry Price Behaviour Compliance Guidelines (draft for comments) by China’s State Administration for Market Regulation (SAMR).
The draft guidelines provide guidance to automotive manufacturers and sales companies on pricing behaviour, institutional frameworks, and compliance practices. Their stated objectives are to maintain fair competition, protect consumer rights, and support a healthy and sustainable supply chain.
BYD stated it will follow the guidelines and continuously optimise its internal price management and compliance systems. The company emphasised strict adherence to regulations on competitive pricing, preventing price fraud, and avoiding unfair practices. BYD also noted its intention to set an example within the industry by promoting compliance and collaboration among automakers.
Potential Impact of the guidelines:
The guidelines’ focus on pricing behaviour may require automakers to standardise pricing across regions and sales channels, reducing arbitrary price differences. Dealers’ flexibility for local promotions could be limited, and anti-competitive practices such as price collusion or sudden price hikes may be curtailed.
The emphasis on institutional frameworks encourages companies to establish internal systems to monitor and ensure compliance. This may involve dedicated compliance teams, reporting mechanisms, or software systems to track pricing practices. While larger automakers may implement these changes efficiently, smaller companies could face higher administrative costs.
The draft outlines compliance practices that encourage training, oversight, and reporting to ensure adherence. Standardising these practices across the industry could reduce legal and reputational risks and enhance transparency and consumer trust. Firms that lead in compliance may gain reputational advantages as trustworthy brands.
Other Chinese automakers, including Nio, GWM, and Xpeng, have issued similar public statements, signalling an industry-wide effort to align with SAMR guidance. Analysts note that, once finalised, the draft guidelines are expected to play a key role in standardising pricing practices and increasing transparency for consumers in China’s automotive market.
