The association does not really have the right to speak. The auto industry's self-discipline is a chaos.
In recent months, the Beijing Market Association has introduced new self-regulation guidelines for the automotive industry. These regulations specifically target four common forms of unfair competition in car sales: false advertising of brands, spreading false information to harm competitors, using bribes or rebates to gain market share, and making significant price cuts. Additionally, the rules prohibit unauthorized use of registered trademarks under the name of official dealers. Industry insiders have already begun discussing these new standards, with many focusing on the issue of price competition in the auto market.
As an editor, I must say that if you haven't heard about the upcoming self-regulatory measures in the auto industry, it's easy to forget that there's even a Beijing Market Association. This group has developed a set of specific rules aimed at car sales, showing that the automotive sector is receiving more attention than ever. While this development might seem positive, the real question remains: how effective can such "self-regulation" truly be?
Looking at the content of the regulation itself, there are several obvious loopholes. One key provision states that "automobiles cannot be sold at significantly reduced prices based on public quotations." This seems to target dealers, who have long been known for arbitrarily lowering prices to compete. In response, automakers have organized various pricing alliances. However, despite these efforts, car prices continue to fluctuate unpredictably. The challenge lies in controlling the behavior of manufacturers, who often directly influence their dealers. What power does a market association have when it comes to enforcing rules against such powerful players?
Automobiles have never had fixed prices in the market. Many of the irregularities outlined in the "self-regulation code" have always existed. Why now? In the past, cars were in short supply, and buying one required connections and personal notes. There was no need for regulation then. Later, car reselling emerged, but the status of dealers was unclear and hard to regulate. In the 1990s, the Beijing Asian Games Village became a major car trading hub, but the so-called "non-standardized behavior" mentioned in the code mostly occurred in small-scale operations, which may not have warranted strict regulation.
Recently, franchised car dealerships have grown rapidly. 4S stores invest millions, and dealers often become wealthy, making the industry highly profitable. Now, the association has issued these new rules. It’s reported that if a dealer violates the regulations, the association could expose them through the media or include them in a credit warning system. Imagine having a sign at your business saying "no credit" issued by a so-called "fair" association — your business would likely suffer. This kind of pressure could force dealers to comply, but at what cost?
Objectively speaking, some of the behaviors of car dealers do harm consumers, and there are certainly unscrupulous actors in the market. Self-regulation from industry associations can help create a fairer environment, which is a positive step. However, some provisions in the guidelines appear outdated and impractical. Some media reports claimed that the new Beijing auto sales regulation could end deep price cuts. If an industry association's document could actually have such a major impact, it would be a big story.
If you can't control the situation, don't make too much noise. The car sales market is already complicated enough — let's not add to the chaos. (Wu Weiqiang)
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