Di Yi Cai Jing·2025-06-08 14:11Core Viewpoint - The automotive industry must adopt an inward-looking approach to control scale and address the issue of vicious competition, emphasizing self-regulation and technological innovation to enhance global competitiveness [1][4]. Group 1: Industry Challenges - The phenomenon of vicious competition is exacerbated by uncontrolled capacity expansion, with over 20 million units of new energy vehicle capacity remaining to be digested in the domestic market as of Q1 2025, where the capacity utilization rate stands at 71.9% [2]. - Major automotive companies, including Geely, are halting the construction of new production facilities to avoid redundant capacity and are focusing on utilizing existing global surplus capacity [2][3]. Group 2: Technological Innovation - Companies are urged to enhance their core competencies and technological capabilities to gain consumer recognition and ensure sustainable development [4]. - The Ministry of Industry and Information Technology emphasizes the importance of quality and innovation, encouraging firms to reflect on their core technologies and long-term market competitiveness [4]. Group 3: Regulatory Environment - The government has shown a strong commitment to addressing the issue of vicious competition, with initiatives outlined in various meetings and reports aimed at maintaining fair competition and preventing price wars [5][6]. - The China Automotive Industry Association has called for adherence to fair competition practices and has opposed bottomless price wars, indicating a shift towards stricter regulatory measures [5][6].