Beijing mandates quality inspections for electric vehicles amid efforts to address the price war.

      Chinese authorities have recently urged the country’s new energy vehicle (NEV) manufacturers to enhance the reliability of their vehicles and have called for stricter inspections amidst an ongoing price war in the industry, which has raised concerns about quality.

      Why it’s important: This warning from Beijing reflects increasing regulatory oversight of the Chinese electric vehicle sector. It follows comments from the chairman of Great Wall Motor, who publicly questioned the quality of heavily discounted EVs and expressed worries about a two-year-long price war impacting the entire supply chain.

      Details: On June 19, three Chinese government agencies advised local automakers to “value the significant progress” made in the NEV sector and to “never compromise” on product safety for short-term cost savings (our translation).

      The Ministry of Industry and Information Technology (MIIT), the State Administration of Market Regulation (SAMR), and the National Fire and Rescue Administration will collaborate on inspections to assess product consistency and confirm quality, as stated by MIIT (in Chinese).

      Context: This development follows MIIT’s announcement earlier this month to increase oversight on “vehicle models that have garnered substantial public attention or present major quality and safety concerns” and to impose penalties on manufacturers that do not comply with national standards.

      Beijing has tightened regulations on the rapidly growing EV industry, including an announcement in April banning automakers from using the term “smart driving” in advertising for intelligent driving features and urging owners to test their vehicles through remote software updates, as reported by Reuters. This decision came after a serious crash involving a Xiaomi SU7 sedan led to heightened public concern regarding vehicle safety.

      READ MORE: Tensions rise between BYD and Great Wall Motor as Geely and GAC enter the fray.

      Jill Shen is a technology reporter based in Shanghai, focusing on Chinese mobility, autonomous vehicles, and electric cars. You can connect with her via email at [email protected] or on Twitter @jill_shen_sh.