To rectify "involution" competition, China's State Administration for Market Regulation (SAMR) issued the "Compliance Guidelines for Pricing Behavior in the Automotive Industry" to further regulate pricing behavior in the automotive sector.

Regulating automotive industry pricing will promote high-quality development in the industry, meaningfully aiding in brand cultivation and shifting the focus from "price competition" to "quality competition", according to China Passenger Car Association (CPCA) Secretary-General Cui Dongshu, cited by The Paper.

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Cui believed that consumers are highly sensitive to car prices in the short term, and "price competition" creates a mindset of "waiting for price cuts". Regulating prices will create a reassuring shopping environment for consumers, helping to alleviate hesitation in car purchases.