GAC chair vouches for social welfare

Guangzhou Automobile Group called the Chinese car-making sector to stop "involution," or ineffective fierce competition, and to make social contributions instead, as the state-owned enterprise has been forced to lay off some employees.

GAC chairman Zeng Qinghong said it is unsustainable for the whole industry to get involved in the price wars.

Zeng complained the price wars have indirectly led to layoffs in many carmakers, even in GAC, as the competition has hurt the companies' profits.

Instead, Zeng thinks the enterprises should make a profit and contribute to society and the country by handing in more taxes and hiring more employees.

Therefore, he appealed to the whole industry to consider the long-term development.

In May, GAC's total car sales contracted by 24.8 percent to 133,313 units than one year ago, with the sales of new energy vehicles slumping by 41 percent, while many electric vehicle makers including BYD and Xiaomi posted double-digit growth last month.