The Chinese Government vows to regulate the fiercely competitive EV price war currently taking the country's domestic car market by storm, calling it a "phenomenon of irrational competition."
What Happened: The Chinese cabinet vowed to strengthen cost investigation and price monitoring in the country's car market, Reuters reported on Wednesday, citing Chinese state broadcaster CCTV.
The CCP will focus on promoting the development of high-quality EVs in the industry and implement short- and long-term measures to curb the EV price war in the country, the report suggests.
The report also suggests the government will urge automakers to uphold supplier payment commitments. The meeting also discussed ways to boost domestic consumption by removing restrictions on household spending.
Why It Matters: The news comes as the government in the past had raised concerns about the increasingly cutthroat competition between automakers in the EV sector.
The government also brought in a regulation in March, requiring manufacturers to clear dues to suppliers within 60 days. The regulations kicked into effect starting in June, leading to automakers pledging to clear supplier dues.
Elsewhere, despite scrutiny and criticism, Chinese EV giant BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) released a longer-range version of its best-selling Seagull EV for $11,000 in China, with a claimed CLTC range of 252 miles.
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