China Association of Automobile Manufacturers Releases Group Standard for Whole-Vehicle Cost Estimation

[Policy & Standards] The China Association of Automobile Manufacturers (CAAM) has led the release of China's first group standard for whole-vehicle cost estimation.

Core Development: Unified Accounting Framework Ends "Benchmarking Without Basis"

On July 15, 2026, CAAM officially published the group standard titled "Rules for Whole-Vehicle Cost Estimation in China’s Automotive Industry," jointly developed by 18 leading vehicle manufacturers. This marks China’s first unified cost estimation framework specifically tailored for the whole-vehicle sector.

Key Details: End-to-End Coverage with Standardized Cost Categories

The standard clearly defines net revenue deductions (including promotions, rebates, and value-added tax), establishes production cost boundaries, and specifies classification logic for items such as transportation fees and warranty-related expenses. It constructs an end-to-end cost estimation model spanning from production to sales and strictly prohibits malicious understatement of costs.

Strategic Foundation: Countering Price Wars and Advancing High-Quality Development

Amid intensifying “cutthroat” price competition, this standard provides the industry with a common cost “language,” enabling reliable cross-company benchmarking and lean management. It aims to curb disorderly competition and enhance the modernization of governance in China’s automotive sector.