The NDRC will stop the monopoly of car prices

It is understood that since 2012, due to the decline in auto sales, many auto dealers have seen a decline in profits. In the face of this situation, auto price monopoly has become a new way to win high profits. In view of this situation, the NDRC will stop the monopoly of car prices.

Since 2012, due to the decline in auto sales, as well as some auto brands gaining market share through price cuts, etc. For the downturn in the big environment, many auto brands began to fight for survival. In the face of wolf's lack of meat, auto price monopoly has become a new means of winning high profits. Regarding this phenomenon that does not conform to the laws of the market, on November 29, Lu Yanchun, deputy inspector of the Price Supervision, Inspection and Anti-Monopoly Bureau of the National Development and Reform Commission, attended a forum in Beijing and said: “The National Development and Reform Commission will stop competitors with competitive relationships from reaching fixed or changed sales. Prices, changes in car prices, discounts or other fee agreements, and coordinated actions. Stop operators from illegally fixing or restricting the prices of reselling cars to third parties.... Last year, car dealers of a certain brand in the industry met together to discuss car prices. We have been investigated and dealt with by us.” On the same occasion of the day, Sun Changqing, deputy director of the Department of Market System Development of the Ministry of Commerce, also disclosed: “The Ministry of Commerce will expedite the revision of the “Implementation Measures for Automobile Brand Sales Management.””

A car dealer told reporters that the current high-end car has a monopoly tendency, but the middle and low-end car is being posted money "meat fight", blindly pursuing market share, this issue also requires regulation. An attorney who asked not to be named told reporters that for the automotive industry, there is currently a kind of “hidden monopoly”, especially for 4S shops, where retail parts are expensive and labor is expensive. Consumers basically have no room for bargaining. The aforementioned car dealers also said that although the autos are now sold, some dealers will post money to sell them, but the auto industry is a long chain, and it can make money back after-sales service.