The automotive industry "anti-involution," how the two major "automotive power provinces" Guangdong and Anhui will do this!

On July 21, People's Financial News reported that the recent State Council executive meeting proposed focusing on promoting the high-quality development of the new energy vehicle industry. In response to various irrational competition phenomena in this sector, a combination of long-term and short-term strategies will be implemented. According to exclusive information from People's Financial News, as strong provinces in automobile manufacturing, Guangdong and Anhui will enhance product quality management, fulfill payment commitments, optimize supplier payment processes, and further regulate competition in the new energy vehicle industry, resist "internet water armies," and strengthen industry self-discipline.

Among them, relevant departments in Guangdong Province stated that Guangdong is strengthening policy guidance and has introduced the "Action Plan for Developing Strategic Pillar Industry Clusters in the Automotive Sector" and the "Implementation Plan for the 'Strong Chain Project' of the Automotive Parts Industry," encouraging collaboration and innovation between complete vehicle and parts enterprises. They are seriously implementing the "Regulations on Ensuring Payment for Small and Medium-sized Enterprises," guiding automakers such as GAC Group, BYD, and XPeng to commit to "supplier payment periods not exceeding 60 days," promoting win-win cooperation between automakers and upstream suppliers. Next, Guangdong will earnestly implement the work deployment of the State Council executive meeting regarding "regulating competition order in the new energy vehicle industry." First, it will guide new energy vehicle companies in Guangdong to compete in an orderly manner, shifting from "price wars" to "value wars," increasing investment in technology, quality, and branding to create consumer-satisfactory vehicle products. Second, it will urge new energy vehicle manufacturers to fulfill the 60-day payment commitment, optimize the payment processes and cycles for automotive suppliers, and alleviate the financial pressure on upstream suppliers. Third, it will support the Guangdong Automotive Industry Association in playing the role of a third-party industry organization, actively responding to the China Association of Automobile Manufacturers' initiative on "maintaining fair competition order and promoting healthy industry development," strengthening industry self-discipline, and creating a fair competitive market environment.

Meanwhile, relevant authorities in Anhui Province stated that in implementing the spirit of the State Council executive meeting on "regulating competition order in the new energy vehicle industry," Anhui will actively guide automakers to implement the meeting's spirit, strengthen product quality management, fulfill payment commitments, deepen technological innovation, break through key core technologies, enhance product quality, and increase industry competitiveness, promoting healthy and sustainable industry development. At the same time, it will leverage the role of industry associations to advocate for legal, fair, honest, proper, and orderly industry competition, jointly resisting online chaos such as "internet water armies" and "black public relations."

Author of this article: Lai Xiaofeng, Source: People's Financial News, Original Title: "The Automotive Industry 'Anti-Involution': How Guangdong and Anhui, Two Major 'Automobile Strong Provinces,' Will Do This!"

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not consider individual users' specific investment goals, financial conditions, or needs. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk