(Bloomberg) -- Tesla Inc. and China's top electric-vehicle makers including BYD Co. signed an agreement in Shanghai on Thursday pledging to maintain fair competition and avoid “abnormal pricing,” signaling a possible end to a damaging price war in the world's biggest EV market.
The agreement, signed at the China Auto Forum, included Nio Inc., Xpeng Inc., Geely and Chery Automobile Co..
Tesla triggered the cuts at the end of last year that rolled into the early months of 2023, with major brands slashing prices in an effort to attract customers as sales slowed.
Read more: Tesla Started a China Price War That May Destroy Some Carmakers
The Elon Musk-led automaker and BYD, China's biggest car brand, were at the forefront of the battle, cutting prices by an average of 6% through the first five months of the year.
The group of automakers pledged not to mislead consumers by exaggerating or falsifying advertising, and to focus on high-quality products and services. The agreement also called on manufacturers to “fulfill social responsibilities, and take positive role in stabilizing growth and preventing risks.”
The price cuts drew the ire of Tesla owners this year, with disgruntled owners flocking to stores and distribution centers to complain about missing out on cheaper cars.
--With assistance from Danny Lee.
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