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BYD, Tesla, 14 others in China agree to not compete 'excessively'

Automakers compromise under Beijing-led initiative as price competition grows

BYD's budget electric hatchback Seagull showcased at the Shanghai International Automobile Industry Exhibition on April 18. (Photo by Yusuke Hinata)

SHANGHAI -- Sixteen automakers -- including China's BYD, Tesla of the U.S., and Chinese state-owned companies that have formed joint ventures locally with major Japanese, U.S. and European automakers -- on Thursday agreed to avoid creating excessive competition in the Chinese market, including 'abnormal pricing.'

The rivals came to a compromise suggested by the Chinese government as Asia's largest economy faces a slowdown, which has led automakers into an intensified price competition in new car sales including electric vehicles.

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