The China Association of Auto Manufacturers (CAAM), which includes EV makers such as Nio, Xpeng, and Tesla, retracted the pledge made by 16 of its members to avoid “abnormal pricing” just two days after its publication, according to Reuters.
The CAAM cited antitrust law as the reason behind the retraction, meaning that the EV price war started by Tesla – which, ironically, was among the companies backing the pledge – will probably continue, at least in China.
The 16 automakers made the pledge on Thursday, and on Saturday it was already retracted. But before that happened, Tesla rolled out a revamped version of its referral program on Friday, including price cuts for all of its passenger vehicles, as well as credits that can be used by customers in the carmaker’s smartphone app to buy Supercharger miles and entries in the official Cybertruck raffle.
Gallery: Tesla Giga Laboratory Store In Chengdu, China
CAAM said in a statement on its website that the pricing pledge had violated China’s antitrust law and said it would delete it from a list of commitments the automakers had signed. It also urged the 16 companies and the rest of its members to strictly comply with the antitrust law and compete fairly with independent pricing, writes Reuters.
It’s worth noting that the pledge that stood for just a couple of days was not legally binding, but self-regulatory. The first point of the document stated that the companies will “abide by the rules and regulations of the industry, regulate marketing activities, maintain a fair competition order, and not disrupt the fair competition order of the market with abnormal prices.”
The brands that signed the pledge include Dongfeng Motor, China FAW, SAIC, BAIC, Changan Automobile, GAC, Chery, JAC, Geely, China National Heavy Duty Truck, Great Wall Motor, BYD, Nio, Li Auto, Xpeng, and Tesla.
Thanks in part to the sometimes chaotic reduction in prices, Tesla and BYD saw delivery numbers set new records in the second quarter in China, with the American brand selling 93,680 made-in-China units, while BYD moved 251,685 all-electric and petrol-electric hybrid vehicles.
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