Pretty concerning for the automotive market in China. This seems like open collusion amongst Chinese OEMs to ensure high prices and profits.

Western OEMs made some concerning comments last year about controlling production numbers to ensure prices remained high in western markets. While I doubt there would be any sort of open collusion such as the pricing pledge these Chinese OEMs have signed, it’s a sign of what all OEMs are thinking.

Car prices are at all time highs, and affordability for consumers are at an all time low. The western markets have shown signs of a price correction taking place through the reintroduction of incentives that haven’t been seen since the beginning of the pandemic. OEMs and dealers had record profits during the shortages but it’s time that prices come back to reality.