AsianFin -- China appears poised to rein in the intensifying price wars that have begun to strain its booming electric vehicle industry.

Beijing’s industrial policy has fueled a rapid shift toward EVs, turning the world’s largest auto market into a global leader in electric mobility. But that success has come at a cost—namely, a crowded field of automakers, many of which are struggling to survive.

Now, as sales hit record highs, long-standing concerns over oversupply and profit-eroding competition are surfacing, prompting regulators to signal that the relentless price cutting may have gone too far.