Bei Jing Ri Bao Ke Hu Duan·2025-05-31 05:43Core Viewpoint - The recent price cuts by BYD and subsequent follow-ups by other automakers have sparked a new round of "price wars" in the automotive market, prompting the China Association of Automobile Manufacturers (CAAM) to issue an initiative advocating for fair competition and warning against the detrimental effects of "involution" competition on industry health [1][2][3] Group 1: Price War and Industry Response - Multiple automakers, including BYD, Geely, and Leap Motor, have engaged in significant price reductions, with BYD's Sea Lion 07 DM-i model dropping to 102,800 yuan, a decrease of 53,000 yuan from the official price [3] - The CAAM's initiative highlights that the ongoing price wars are leading to a decline in industry profitability and are a major factor in the industry's deteriorating performance [1][2] - The Ministry of Industry and Information Technology (MIIT) supports the CAAM's initiative and plans to enhance regulatory measures to combat "involution" competition, ensuring a fair market environment [2][3] Group 2: Implications of Price Wars - The MIIT emphasizes that the chaotic price wars threaten the sustainable development of the automotive industry and can compromise product quality and after-sales service [2][3] - Industry leaders express concerns that the price wars not only deplete corporate profits but also erode consumer trust in "Made in China" products, with reports of unethical practices such as suppliers being pressured to lower prices and delayed payments [4]