February 13, 2026

China mandates car prices to be 20% lower than worst European models

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China has issued new car pricing guidelines that require vehicles to be priced at least 20% lower than the cheapest European car. This directive is part of a broader strategy to support local electric vehicle (EV) manufacturers amid increasing global trade tensions and to enhance China’s competitiveness in international markets. By enforcing these pricing measures, the Chinese government aims to bolster the export of competitively priced vehicles and ensure affordable domestic EV options, reinforcing its ambition to lead in the global EV market.

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