{
  "id": 17876549,
  "title": "As sales slow, carmakers in China turn to overt marketing tactics and face controversy",
  "url": "https://urgent.news/2026/11/03/as-sales-slow-carmakers-in-china-turn-to-overt-marketing-tactics-and",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-11-03T00:00:29.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3372984/sales-slow-carmakers-china-turn-overt-marketing-tactics-and-face-controversy"
  },
  "original_language": "en",
  "account": "Chinese car manufacturers are facing scrutiny over their marketing strategies as sales slow, leading to controversy and regulatory scrutiny. Following a comment by an Xpeng employee, regulators are tightening quality checks on the industry. At a new model launch event on October 15, a product manager used the term \"Lao Deng\" to mock new cars that failed to attract younger buyers, which provoked anger from middle-aged consumers. The manager later apologized, emphasizing that the comment was meant to criticize the inflexibility of some car designers. Chen Xiao, CEO of Shanghai Yacheng Culture, a marketing agency, warned that improper use of language during public events can lead to significant business damage. Chinese automakers, especially those producing electric vehicles, are in a race to attract new customers amid declining demand. In the first nine months of 2026, 15.3 million passenger cars were sold in China, a 21.7% decline year-over-year. Despite being leaders in EV technology, carmakers have faced multiple crises due to aggressive marketing claims, such as labeling their vehicles as the world's most advanced or safest. In April 2025, the Ministry of Industry and Information Technology prohibited the use of \"autonomous driving\" in marketing after a fatal accident involving a Xiaomi SU7 electric car. The ministry also cautioned against overstating the capabilities of driver-assistance systems. In August, MIIT vice-minister Xin Guobin announced stricter approval procedures for new automotive products, requiring vehicles to pass more rigorous quality assessments before market entry.",
  "summary": "Chinese carmakers’ marketing tactics are under the spotlight after a controversy surrounding a comment by an Xpeng employee drew harsh criticism from middle-aged consumers. The incident comes as regulators step up quality checks on the reliability of automotive companies, according to industry officials and analysts. During a live-streamed new model launch ceremony on October 15, an Xpeng product…",
  "key_points": [
    "Chinese carmakers facing sales slowdown and regulatory scrutiny",
    "Product manager's mocking term 'Lao Deng' sparks controversy at launch event",
    "MIIT tightens approval procedures for new automotive products"
  ],
  "editors_take": "Aggressive promotional tactics and divisive language are inviting stricter regulatory oversight as Chinese manufacturers struggle to capture new customers amidst a significant downturn in passenger car sales.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}