China sets new pricing and safety standards for the auto sector to curb price wars

The State Administration for Market Regulation (SAMR) and the Ministry of Industry and Information Technology in China CN have released new guidelines and draft safety standards designed to stabilize the nation's automotive sector. Announced on February 12, 2026, the measures aim to curb unfair pricing practices and establish rigorous technical benchmarks for automated driving systems, brake assistance systems, and vehicle control components. This coordinated effort is intended to rein in a years-long price war that has disrupted the market and protect the overall value of the industry.

These regulatory actions are expected to have a broad impact on China's auto industry, affecting the operations and profitability of Automakers, Parts suppliers, and Dealers. By targeting structural pricing behavior, the State Administration for Market Regulation (SAMR) and other authorities seek to restore consumer confidence at a time when demand in the world's largest auto market is expected to stagnate. The draft safety standards for automated driving and vehicle control components further emphasize a commitment to strengthening vehicle safety alongside economic stability.