- The CAAM said the move was intended to avoid fragmented information that could trigger one-sided interpretations and reduce market disruption from misleading public opinion.
- Li Auto's weekly sales chart, which it shares every Tuesday, may not continue to be published.
The weekly sales charts that Li Auto (NASDAQ: LI) shares every Tuesday may no longer be available, as an industry association is urging a halt to the publication of such charts.
The China Association of Automobile Manufacturers (CAAM) today issued an initiative to regulate the release of company data, calling on individual companies to stop publishing weekly sales rankings.
This is aimed at avoiding fragmented information that could lead to one-sided interpretations and reducing market disruptions caused by misleading public opinion, the CAAM said.
The CAAM advocates that companies release their own operating data on a cycle that is consistent with the operating laws of the automotive industry, such as monthly, quarterly and annual.
In recent years, China's auto industry has accelerated its transition to electrification, intelligence and internet connectivity and achieved a leading edge, the CAAM said, adding that these achievements are hard-won and need to be cherished by all parties in the industry.
"Recently, we have been concerned about the frequent release of weekly sales lists by some automakers that do not represent the laws of the market, and the source of the data is unknown," the CAAM said.
"These behaviors have triggered public opinion misinterpretation, disturbed the order of the industry, and exacerbated 'involutional' vicious competition," CAAM said.
In order to safeguard the healthy ecology of the auto industry and guide the industry to focus on high-quality development, CAAM issued the initiative to Chinese auto industry enterprises, according to a statement.
Companies' marketing should focus on their own business results, avoiding the use of comparative expressions and publishing content such as correlation rankings, the CAAM said.
The CAAM also called on third-party organizations and media to respond to the initiative by stopping the release of weekly sales lists and guiding the public to view market fluctuations rationally.
The CAAM didn't name a specific car company, but it's clearly referring to Li Auto (NASDAQ: LI) -- which for the past two years has shared weekly insurance registration data from car companies every Tuesday at noon.
As Li Auto has seen strong sales performances over the past two years, these lists have helped it strengthen its position as the leading player among the new car-making powerhouses.
At the same time, large fluctuations in the weekly data have sparked protests against the list from some of its other peers.
Executives at Nio (NYSE: NIO) and Xpeng (NYSE: XPEV) had called on Li Auto to stop publishing the weekly lists, saying they affected their operations, though the calls have not been effective.
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