<p>China's auto industry association on Wednesday urged automakers and authorities to cool "price-cut hype" to ensure the stable development of the industry.</p>.<p>"A price war is not a long-term solution", the China Association of Automobile Manufacturers wrote in an article published on its WeChat account.</p>.<p>Automakers should work harder on technology and branding while local governments should also use "appropriate methods" while promoting and stabilising the economy, CAAM added.</p>.<p>More than 40 brands of electric and internal combustion engine (ICE) vehicles in China have offered aggressive discounts to create demand, following Tesla Inc into what has become a price war over market share.</p>.<p>Local authorities have also been rolling out buyer subsidies to drive demand and some of these programmes have started to extend to automakers to encourage manufacturing.</p>.<p>The auto industry with its long supply chain has been a pillar to China's economy, contributing a large proportion of tax revenue and employment. </p>
<p>China's auto industry association on Wednesday urged automakers and authorities to cool "price-cut hype" to ensure the stable development of the industry.</p>.<p>"A price war is not a long-term solution", the China Association of Automobile Manufacturers wrote in an article published on its WeChat account.</p>.<p>Automakers should work harder on technology and branding while local governments should also use "appropriate methods" while promoting and stabilising the economy, CAAM added.</p>.<p>More than 40 brands of electric and internal combustion engine (ICE) vehicles in China have offered aggressive discounts to create demand, following Tesla Inc into what has become a price war over market share.</p>.<p>Local authorities have also been rolling out buyer subsidies to drive demand and some of these programmes have started to extend to automakers to encourage manufacturing.</p>.<p>The auto industry with its long supply chain has been a pillar to China's economy, contributing a large proportion of tax revenue and employment. </p>