MIIT: Consolidate Comprehensive Rectification Achievements of "Involutionary" Competition in the New Energy Vehicle Industry

On July 28, a meeting of national industrial and information technology authorities' leaders was held in Beijing. It was mentioned that further comprehensive deepening of reforms would be undertaken to enhance the modernization level of industry governance. Efforts will be accelerated to implement reform tasks and ensure the effective preparation of the "15th Five-Year Plan." The results of comprehensive rectification in the "involution" competition of the new energy vehicle industry will be consolidated, and governance of key industries such as photovoltaics will be strengthened. The exit of backward production capacity will be spurred through improvements in standards.

In May of this year, a relevant official from the Ministry of Industry and Information Technology stated in an interview that the "price war" among car companies has brought significant impact to the normal production and operation of automobile enterprises, endangering the health and sustainable development of the industry.

Encourage enterprises to reduce production costs through technological and managerial innovation, providing consumers with higher quality and more cost-effective products.

The disorderly "price war" among enterprises is a typical manifestation of "involution" competition, which is detrimental to sustained R&D investment, subsequently affecting product quality, performance, and service levels, and may even lead to safety hazards, thereby harming consumer rights and interests.

The Ministry of Industry and Information Technology will intensify efforts to address "involutive" competition in the automobile industry, promote the optimization and adjustment of industrial structure, strengthen product consistency spot checks, cooperate with relevant departments in law enforcement against unfair competition, and take necessary regulatory measures to resolutely uphold a fair and orderly market environment, effectively safeguard the fundamental interests of consumers, and promote the high-quality development of the automobile industry.