The China Association of Automobile Manufacturers (CAAM) introduced an initiative on Tuesday focused on standardizing regulations governing the release of data by automotive companies and urged individual companies to cease the practice of publishing weekly sales rankings.
The CAAM has observed that certain automakers frequently release weekly sales rankings with ambiguous data sources, which fail to provide an accurate picture of market trends. The practice has caused public misunderstandings, disrupted the industry’s order, and fueled unhealthy competition.
The CAAM stated that the initiative seeks to prevent fragmented information that may result in biased interpretations while minimizing market disruptions caused by misleading public perceptions.
The association advises companies to synchronize the release of operating data on a monthly, quarterly, and annual schedule, aligning with the typical patterns of the automotive industry to support the sector’s stable operations. Companies should emphasize achievements in technology, innovation, and services, avoiding comparisons or rankings that promote unhealthy competition. The objective is to shift the industry focus from data competition to service and value competition, CAAM said.
The CAAM encouraged companies to support the initiatives and pressed third-party organizations and media to cease publishing weekly sales rankings. Instead, the automakers should prioritize advancements in industry technology and green transformation, guiding the public to interpret market fluctuations responsibly and discouraging the sensationalism of short-term data.
The approach seeks to create a constructive environment for the industry’s advancement and promote sustainable development in China’s automotive sector.
Although the CAAM didn’t mention any specific company, it appears to be addressing Li Auto (NASDAQ: LI), which has been publishing weekly insurance registration data for two years. The fluctuations in the data have drawn criticism from other leading manufacturers. Executives at Nio (NYSE: NIO) and Xpeng (NYSE: XPEV) had asked Li Auto to discontinue the lists, citing disruptions to their operations.
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