China’s Automakers Urged to Dial Down Price War

China’s automakers have been urged to dial down their steep price cuts by a leading industry group after a drop in purchases of both electric vehicles (EVs) and fossil fuel cars sparked intense competition, reflecting broader concerns that the rush to the bottom may threaten their profits.

The China Association of Automobile Manufactures (CAAM) said the fervency with which automakers are competing by lowering their prices needs to “cool down” as soon as possible so that the industry can return to normal operations, according to a statement the group published on Wednesday.