The statement that the China market had "abnormal prices" was withdrawn less than two days later.
The automakers' commitment letter was improper and went against the terms of the anti-monopoly law.
The association asked businesses to determine their own prices and engage in fair competition while removing the aforementioned clause from the letter.
16 automakers ratified the agreement by signing the letter.
This group, which also included Tesla, BYD, Li Auto, and Nio, stood for a dedication to fair competition in the Chinese auto industry.
It was made with the intention of ending the continuing price war that has affected the EV market ever since Tesla lowered its prices in the Chinese market.
For Model Y and Model 3 buyers in the nation who make a referral, Tesla promised an incentive of 3,500 yuan ($484).
Customers who purchase a Tesla will have complimentary 90-day access to the company's upgraded autopilot system.