China's market regulator has issued guidance to curb below-cost car sales, seeking to end a price war that has hurt profitability in the world's largest auto market. The State Administration for Market Regulation aims to prevent automakers from selling vehicles at prices below production costs, which disrupts market order.

The auto sector has battled intense price competition for over a year, with manufacturers slashing prices and offering heavy incentives amid slowing demand and rising inventories. Electric vehicles have seen particularly fierce competition as dozens of domestic brands vie for dominance alongside global players.

Regulators also warned against coercive rebate arrangements that shift losses onto dealerships, promising stronger enforcement of anti-unfair competition laws. This move reflects policymakers' efforts to stabilize key industries while encouraging more sustainable growth in China's increasingly crowded automotive market.