告别价格战，汽车行业要下决心“破卷”

Core Viewpoint - The Chinese automotive industry is facing challenges due to rampant price wars, which are seen as a form of "involutionary competition" that undermines healthy industry development [1][2]. Group 1: Industry Challenges - The ongoing price wars are severely squeezing profit margins for companies, leading to reduced investment in research and development, creating a vicious cycle of "price cuts - reduced quality - declining competitiveness" [1]. - Price wars are impacting the safety of the industrial and supply chains, as companies pressure suppliers to lower costs, resulting in thin margins for suppliers and potential quality issues [1]. - While consumers may benefit from lower prices in the short term, the long-term decline in product quality and after-sales service could harm consumer rights and safety [1]. Group 2: Regulatory Response - The China Automotive Industry Association has issued an initiative supporting fair competition and opposing bottomless price wars, signaling a shift towards quality-focused development rather than mere market scale [2]. - The Ministry of Industry and Information Technology (MIIT) has characterized price wars as "involutionary competition," indicating a regulatory focus on the quality of development in the automotive sector [2]. - The initiative emphasizes that while reasonable pricing strategies are acceptable, unfair practices such as selling below cost to eliminate competitors will be curtailed, establishing a clear boundary for competition [2]. Group 3: Recommendations for Improvement - Companies are encouraged to adopt a correct competitive mindset, focusing on innovation to enhance product competitiveness and meet evolving consumer demands [3]. - Industry associations should strengthen self-regulation by establishing clear industry norms and standards, and supervising compliance among companies [3]. - Government departments need to enhance regulatory frameworks, intensify the crackdown on unfair competition, and promote policies that encourage increased R&D investment [3].