CAAM Says Car Promotion Should not Lead to a Price War

SHANGHAI, Mar 29 - Recently, the China Association of Automobile Manufacturers (CAAM) called for a rational approach to this round of car promotions, and the market should return to normal order as soon as possible to ensure the healthy and stable development of the industry throughout the year.

Since March, car promotion and price cuts have aroused widespread concern and heated discussions in the market.

The CAAM believes that considering the performance of the auto market since last year, it is necessary to take measures to stabilise growth. In order to get off to a good start in the first quarter, the local governments have acted to activate the market, and jointly launched relatively strong consumption promotion policies to boost local auto consumption which were also intended to get enterprises out of the woods.

For enterprises, while reducing prices to destock inventory and properly recovering costs can be normal operating measures, this should not lead to a price war.