Chinese car makers told to avoid overseas price wars
Words: Kyle Cassidy
Chinese car makers have been warned by their own government against using aggressive price cuts and misleading advertising as they expand into international markets.
According to a report by Nikkei Asia, the new guidance is intended to stop Chinese manufacturers from damaging competition or the reputation of the country’s automotive industry as they establish themselves overseas.
The Guidelines on Overseas Competition and Compliance Construction were jointly issued by China’s Ministry of Commerce, Ministry of Industry and Information Technology, and State Administration for Market Regulation.
Chinese manufacturers are being encouraged to set prices according to production costs, international supply and demand, and conditions within individual markets. They have also been told to avoid frequent or substantial price changes that could disadvantage existing customers, disrupt dealer networks or damage brand values.
The document calls for clear price differences between model grades and asks manufacturers to respect the pricing independence of their overseas distributors and dealers. Discounts, finance offers and promotional gifts should also be presented transparently.
Marketing has come under scrutiny as well. Chinese car companies have been advised to provide complete and accurate information rather than make false or misleading claims about their products.
The guidelines extend beyond pricing and advertising. Manufacturers should ensure exported vehicles are suitable for the conditions and requirements of their intended markets, while improving quality control, parts supply and after-sales support.
There is also guidance covering overseas manufacturing, employment practices, intellectual property and the handling of customer data generated by connected and autonomous vehicles.
The move follows the rapid international growth of China’s automotive industry as manufacturers look beyond an increasingly competitive domestic market. China exported 8.32 million vehicles to more than 200 countries and regions during 2025, according to figures reported by Reuters.
That expansion has already attracted political attention. The European Union imposed additional tariffs on Chinese-built electric vehicles after concluding that government subsidies gave their manufacturers an unfair advantage.
The guidance will also be relevant in New Zealand, where Chinese brands continue to expand and frequently compete on price, equipment and warranty coverage. However, it remains to be seen whether the new direction from Beijing will result in fewer discounts or more stable pricing locally.
For China, the wider aim is to ensure short-term sales growth doesn’t come at the expense of customer confidence, dealer viability or the long-term reputation of its rapidly expanding automotive industry.
