China’s Ministry of Industry and Information Technology (MIIT) has issued a warning against aggressive price wars impacting the nation’s rapidly growing electric vehicle (EV) market. The MIIT emphasizes the need to restore order within the sector following concerns over “involution-style” competition that threatens long-term sustainability in China’s burgeoning auto industry. 2023 has seen automakers, including BYD and Geely, slash prices on a range of models to secure market share, causing widespread price discounting across the EV landscape. The MIIT’s intervention comes after the China Association of Automobile Manufacturers (CAAM) urged manufacturers to avoid destabilizing practices that could harm the market. To address these concerns, the ministry is preparing to increase regulatory oversight and intervene as necessary, prioritizing long-term stability over short-term gains within the sector. Industry analysts suggest this shift in focus from quick growth to sustainable success may require significant adjustments, as price wars could ultimately prove detrimental to weaker players.