一财社论：无序“价格战”没有赢家，更没有未来

Core Viewpoint - The automotive industry in China is transitioning from rapid growth to high-quality development, necessitating a shift away from chaotic "price wars" that represent "involutionary" competition, which is detrimental to industry health and sustainability [1][3]. Group 1: Industry Challenges - The China Association of Automobile Manufacturers (CAAM) has issued an initiative to maintain fair competition and promote healthy industry development, highlighting that chaotic "price wars" are a significant factor in declining industry profitability and threaten supply chain stability [1][3]. - The Ministry of Industry and Information Technology supports this initiative, emphasizing that "price wars have no winners and no future," and will increase efforts to rectify "involutionary" competition in the automotive sector [1][3]. - Recent aggressive price cuts by a car manufacturer have triggered a new wave of price wars, leading to significant stock price declines for companies like BYD, Geely, and Leap Motor during late May [1][3]. Group 2: Market Dynamics - Data indicates that in 2024, China's automotive production and sales are expected to stabilize at 30 million units, with new energy vehicles (NEVs) projected to exceed 10 million units in annual production, marking a significant leap in development [2]. - From January to April this year, China captured a remarkable 68% share of the global NEV market, supported by national policies and a vast consumer market that fosters technological innovation and market expansion [2]. Group 3: Financial Implications - The automotive manufacturing industry's profit margin is projected to be 4.3% in 2024, which is lower than the overall industrial profit margin of 5.4%, and is expected to decline further to 3.9% in the first quarter of 2025 [3]. - The chaotic "price wars" negatively impact sustainable profitability, potentially leading to a "mutually destructive" consumption battle that harms normal business operations and disrupts innovation investments [3][4]. Group 4: Strategic Recommendations - Companies should rationally address inventory clearance while facing a slowing market, avoiding aggressive price wars that violate market principles and compress profit margins across the supply chain [4]. - Emphasizing new productive forces for development is crucial to avoid low-quality and homogeneous competition, as prolonged price wars can diminish profit and operational efficiency, hindering innovation and sustainable growth [5]. - Leading enterprises in the automotive industry should take the initiative to foster a mutually beneficial industrial ecosystem, avoiding "zero-sum games" and ensuring quality standards are maintained throughout the supply chain [6].