The price undertaking mechanism for battery electric vehicles, a result of China-EU coordination on industrial chains and technical standards, could serve as a model for resolving global trade disputes while aligning closely with China's broader push toward high-end, intelligent automotive development, said industry experts.

"The newly issued guidance clarifies the application procedures and assessment criteria for price undertakings, significantly reducing policy uncertainty," said Cui Dongshu, secretary-general of the China Passenger Car Association.

"This allows companies to formulate clearer export and investment strategies — such as adjusting pricing structures or planning localized production in Europe — which is crucial for stabilizing market expectations and bolstering confidence among automakers going global," Cui said.

The remarks came as China and the EU, after more than a year of negotiations, recently agreed to set minimum prices for imported Chinese EVs in place of hefty tariffs, while providing Chinese exporters with general guidance on price undertakings to address concerns in a pragmatic and compliant manner.

Cui noted that the implementation of the mechanism is expected to encourage an upgrade in China's export product mix, with a greater focus on mid — to high-end and differentiated models.

"The price undertaking will prompt Chinese automakers to reshape their EU product portfolios by scaling back entry-level, low-priced models and prioritizing mid-size and large SUVs, sedans and high-end intelligent EVs," he said.

At the same time, differentiated competition will become key, Cui added. Technologies and service models such as Nio's battery-swapping system, BYD's cell-to-body technology and XPeng's intelligent driving solutions can help attract European consumers through unique value propositions, enabling Chinese brands to move from price-based competition to value-driven competition, he explained.

The senior expert highlighted that in the initial stage of implementation, some automakers may experience short-term sales fluctuations as they adjust pricing and product structures. "However, as companies adapt to the new rules, release localized production capacity and enhance competitiveness, sales of Chinese EVs in the EU market are expected to gradually recover," he said.

This trajectory also aligns with Europe's growing demand for green transformation, where new energy vehicles have become a major growth driver. According to data from the European Automobile Manufacturers' Association (ACEA), EU new car registrations rose only 1.4 percent year-on-year in the first 11 months of 2025. By contrast, registrations of BEVs and plug-in hybrids surged 27.6 percent and 33.1 percent, respectively.

Looking ahead, Cui emphasized that deeper industrial cooperation, mutual recognition of standards and technological integration will define the future of the global automotive industry.

"In the long run, China and the EU are expected to shift from trade-level frictions to deeper industrial collaboration," he said. On the one hand, China's charging standards and battery-swapping technologies may gain broader EU recognition, promoting global standard convergence. On the other, technological cooperation between automakers — such as Volkswagen's partnership with XPeng and Stellantis' collaboration with Leapmotor — is likely to continue, enabling complementary strengths.

Sun Xiaohong, secretary-general of the automotive branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, cautioned that although the EU has accepted the proposal on price undertakings, the evaluation process still remains highly complex, requiring significant compliance efforts and greater transparency in European operations.

"Beyond price undertakings, the EU has also introduced other measures, including the foreign subsidies regulation, the carbon border adjustment mechanism, localization requirements, local procurement rules and joint venture restrictions — forming a comprehensive set of measures targeting Chinese companies," Sun said.

Against this backdrop, Sun stressed that compliance should serve as the foundation for proactive breakthroughs. "Automakers should establish professional teams to interpret requirements, build refined compliance management systems, and reduce regulatory risks," he said.

At the same time, localization should be treated as a long-term strategy, with joint ventures, local manufacturing and technology cooperation helping companies integrate into Europe's industrial ecosystem, meet carbon footprint and supply chain requirements, and fundamentally mitigate trade barriers, Sun noted.