China has announced a sweeping crackdown on misleading advertising and marketing practices in its auto sector, as regulators move to tighten oversight of one of the country’s most competitive and fast-evolving industries.
The State Administration for Market Regulation (SAMR) confirmed on Wednesday that a three-month campaign is underway, targeting carmakers and dealerships accused of exaggerating performance claims, downplaying safety concerns, or using deceptive financing promotions to lure customers.
Officials said the initiative is aimed at “cleaning up the market environment” and protecting consumer rights at a time when competition between traditional manufacturers and new electric vehicle (EV) brands is intensifying.
“False publicity and dishonest sales tactics not only damage consumer trust but also disrupt fair competition,” the regulator said in a statement. “We will strictly investigate and punish violations to ensure the healthy development of the automobile industry.”
The campaign will focus on advertisements that overstate fuel efficiency, misrepresent autonomous driving features, or conceal hidden costs in purchase agreements. Regulators also plan to scrutinise claims made by EV start-ups, many of which have been accused of inflating battery range figures or promising technology that has yet to materialise.
China, the world’s largest auto market, has seen explosive growth in EV sales over the past five years, with both domestic firms like BYD, Nio and Xpeng, and global giants such as Tesla competing fiercely for market share. Industry analysts say that with so many players in the market, some have resorted to aggressive and at times questionable marketing tactics.
Consumer advocates have welcomed the move. “This is a necessary step to rebuild trust,” said Zhao Ming, a Beijing-based automotive commentator. “For years, car buyers have been frustrated by misleading adverts that don’t match the reality of what they drive off the lot.”
The crackdown follows a broader effort by Chinese authorities to regulate the digital economy and consumer markets more stringently, reflecting Beijing’s determination to align industry growth with higher standards of transparency and accountability.
SAMR said the campaign will run through the end of the year, with results expected to be made public. Companies found in breach of the rules could face fines, orders to suspend sales, and in severe cases, criminal liability.
Analysts believe the campaign will also serve as a warning to global carmakers operating in China that compliance with local advertising and consumer protection standards will be monitored more closely.
“This isn’t just about disciplining domestic firms,” Zhao added. “It’s about setting the tone for the entire industry, foreign and local alike.