New National Rules on Auto Pricing Compliance End "Price War" Chaos

On February 12, 2026, China’s State Administration for Market Regulation released the "Compliance Guidelines for Pricing Practices in the Automotive Industry," establishing legal boundaries for the three-year-long automotive price war. Recently, joint-venture brands such as GAC Honda, GAC Toyota, and Dongfeng Nissan have significantly slashed prices—largely as inventory-clearance strategies. For example, the Accord e:PHEV’s advertised “100,000-yuan discount” comes with multiple conditions and restrictions. Under mounting inventory pressure, the industry-wide practice of “trading price for volume” has severely depressed profit margins. The new Guidelines explicitly prohibit predatory pricing below cost, regulate misleading claims like “lowest price online,” and ban manipulative tactics such as “paid feature unlocking.” The aim is to shift competition away from price wars toward technology, service, and value. In response, automakers are simultaneously upgrading vehicle configurations and introducing attractive financing and maintenance packages. For consumers, this may mean the end of ultra-low prices in the short term but promises a safer and more transparent purchasing environment over the long run. For the industry, the move helps curb destructive competition, creates breathing room for smaller brands, accelerates the transformation of joint ventures, and supports leading enterprises in achieving high-quality growth.