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Recently, the State Administration for Market Supervision and Administration released the "First Batch of Typical Cases of Anti-Monopoly Law Enforcement Special Actions in the Field of People's Livelihood in 2024". Among them, five brands are on the list, namely Jaguar Land Rover (China) Investment Co., Ltd. and Audi (China) Enterprise Management Co., Ltd., Volkswagen (China) Investment Co., Ltd., BMW (China) Automobile Trading Co., Ltd. and Mercedes-Benz (China) Automobile Sales Co., Ltd. The State Administration of China delivered a "Reminder and Urgent Letter" in person requesting rectification.

The State Administration pointed out that since 2022, many dealers have reported to it that due to factors such as the impact of the new energy market, purchase tax adjustments, and automobile price wars, the operating pressure of fuel vehicle brand automobile suppliers and dealers has increased, and many brand automobile suppliers have imposed unreasonable restrictions on downstream dealers, and their business activities have monopoly risks and are suspected of violating the Anti-Monopoly Law. After verification, dealers have long been highly dependent on branded car suppliers. In order to maintain production and profits, branded car suppliers often pass on operating pressure to downstream dealers and to consumers, causing market monopoly risks.

On January 18, 2024, the State Administration for Market Regulation delivered a "Reminder and Urgent Letter" in person to five car suppliers of Jaguar Land Rover, Audi, Volkswagen, BMW and Mercedes-Benz in accordance with the law. The letter pointed out that the monopoly risks existing in the above-mentioned company's operating behaviors require strengthening compliance management and serious self-inspection and rectification. Five brand automobile suppliers attached great importance to it, submitted rectification reports and proposed targeted rectification measures.

On July 23, 2024, the State Administration for Market Regulation listened to explanations from five brand automobile suppliers on the rectifications and required them to effectively rectify and effectively maintain the order of fair competition in the automobile dealer market. The State Administration said that this reminder urges timely prevention of monopoly risks in the automobile dealership market, effectively safeguarding fair competition in the automobile dealership market and the interests of consumers, and is conducive to giving full play to the key role of automobile consumption in expanding domestic demand and stabilizing the economy.

Since the beginning of the year, the automobile market has faced unprecedented fierce competition. At present, the new energy vehicle industry has shown steady growth, and companies deploying electric vehicles have growth potential, making life increasingly difficult for traditional joint ventures. Against the background of shrinking profit margins, some automobile suppliers have to follow independent automobile companies and be forced into price wars in order to survive. At this time, most traditional automobile brands still rely on the dealer model and formulate higher market goals. Goals and lower market pricing have further deteriorated the living environment of dealers. A survey report released by the China Automobile Dealers Association shows that while the automobile market maintained growth in the first half of the year, dealer operating risks intensified, and about half of dealers were at a loss.

For automakers, multi-dimensional competition in terms of technological innovation, product quality, product quality, and high-quality services is fundamental to ensure the long-term sustainable development of enterprises. If you want to stay in the increasingly competitive Chinese market, you must also Enhance core technological advantages. Faced with a future market where challenges and opportunities coexist, joint venture car companies need to maintain keen insight, firm determination and continuous innovation capabilities.

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