Lantu Chairman: Auto Industry's Cutthroat Competition Easing, Online Misconduct Crackdown Shows Early Results

On April 11, at the High-Level Forum on Intelligent and Electric Vehicle Development held in Beijing, Lu Fang, Chairman and Party Secretary of Voyah Auto, stated that the "fierce and unhealthy internal competition" previously seen in China's automotive industry has significantly improved. He noted that although market competition remains intense, it is no longer "unhealthy," and under government regulation, the industry's competitive environment is becoming healthier. Lu specifically highlighted that instances of automakers disparaging each other and engaging in unfair competition are gradually declining. This positive shift is closely linked to a three-month special rectification campaign launched in September 2023 by six government departments, including the Ministry of Industry and Information Technology (MIIT), targeting online misconduct in the automotive sector. The campaign focused on cracking down on illegal profiteering, exaggerated or false advertising, and malicious defamation, aiming to standardize corporate marketing practices and foster a healthier public discourse environment. The rectification measures included requiring companies to conduct internal self-inspections, establishing accessible reporting channels, strengthening the handling of reported issues, and encouraging automakers to report to regulators about problematic activities involving "online trolls," "black PR," "malicious commentators," and "fan-circle" behaviors. Meanwhile, relevant authorities have legally and contractually shut down and publicly exposed a number of offending media accounts, and held accountable—and imposed penalties on—the PR firms, marketing agencies, and automakers behind these violations.