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Chinese authorities recently called upon the country’s new energy vehicle (NEV) makers to step up efforts to ensure the reliability of their vehicles and ordered enhanced inspections against the backdrop of a relentless price war across the industry that has raised concerns about quality issues.
Why it matters: Beijing’s warning is the latest sign of growing regulatory scrutiny of the Chinese electric vehicle market. It comes after Great Wall Motor’s chairman publicly questioned the quality of heavily discounted EVs in the market and voiced concerns over a two-year-long price war that has affected the entire supply chain.
Details: Three Chinese government bodies on June 19 warned local automakers to “cherish the remarkable achievements” in the development of the country’s NEV industry and “never compromise” the safety of their products for cost reductions in the short term (our translation).
Context: The news comes after the MIIT said earlier this month that it will increase monitoring of “vehicle models that have attracted significant public attention or present considerable quality and safety risks” and impose penalties on those found to be noncompliant with national standards.
READ MORE:Spat between BYD and Great Wall Motor intensifies as Geely, GAC join the battle
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