Jing Ji Ri Bao·2025-07-05 03:10Core Viewpoint - The automotive industry is experiencing a shift away from chaotic price wars, with companies like BYD and Tesla taking steps to stabilize pricing and improve profitability [2][4]. Industry Overview - In the first five months of the year, China's automotive production and sales reached 12.826 million and 12.748 million units, respectively, reflecting year-on-year growth of 12.7% and 10.9% [2]. - The industry has been characterized by disordered price wars, which have occurred in four rounds over the past three years, impacting profitability and long-term innovation [4]. Company Actions - BYD has halted its "limited-time fixed price" policy and introduced a new purchasing policy [2]. - Tesla China has raised the price of the Model 3 Long Range All-Wheel Drive version by 10,000 yuan [2]. Market Dynamics - The effectiveness of price cuts to stimulate sales is diminishing, as evidenced by a leading automaker achieving monthly sales of over 300,000 units in the first half of the year [4]. - Regulatory bodies are taking action against disordered competition, with the China Association of Automobile Manufacturers advocating for fair competition and the Ministry of Industry and Information Technology emphasizing the negative impacts of price wars on product quality and economic development [4].