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since 2022, many dealers have reported to the state administration for market regulation that due to the impact of the new energy market, purchase tax adjustments, automobile price wars and other factors, the operating pressure on fuel vehicle brand automobile suppliers and dealers has increased. many brand automobile suppliers have imposed unreasonable restrictions on downstream dealers, suspected of violating the anti-monopoly law of the people's republic of china.

after verification, it was found that my country has formed an automobile sales model dominated by single-brand authorization for a long time, and dealers are highly dependent on brand automobile suppliers. in order to maintain production and profits, brand automobile suppliers often pass on operating pressure to downstream dealers and transmit it to the consumer end, causing market monopoly risks. on january 18, 2024, in order to promote the solution of competition problems such as brand automobile suppliers imposing unreasonable restrictions on downstream dealers, the state administration for market regulation, in accordance with the anti-monopoly law of the people's republic of china and the notice of the state administration for market regulation on establishing an anti-monopoly "three letters and one letter" system issued by the office of the anti-monopoly and anti-unfair competition committee of the state council, sent a "reminder and urge letter" to five brand automobile suppliers, namely jaguar land rover (china) investment co., ltd., audi (china) enterprise management co., ltd., volkswagen (china) investment co., ltd., bmw (china) automobile trading co., ltd. and mercedes-benz (china) automobile sales co., ltd., pointing out the monopoly risks in their business operations, requiring them to strengthen compliance management and earnestly carry out self-inspection and rectification. the five brand automobile suppliers attached great importance to it, submitted rectification reports, and put forward targeted rectification measures. on july 23, the state administration for market regulation listened to the explanations of five brand automobile suppliers on their rectification progress and required them to make effective rectifications to maintain fair competition order in the automobile distribution market.

the automobile industry is an important pillar industry of the national economy and plays an important role in the national economy and social development. the cpc central committee and the state council have made important arrangements for boosting automobile consumption and building a strong automobile country. this reminder urged timely prevention of the risk of monopoly in the automobile distribution market, effectively safeguarded fair competition in the automobile distribution market and the interests of consumers, and was conducive to playing a key role in expanding domestic demand and stabilizing the economy.