Zhong Guo Jing Ji Wang·2025-12-30 02:50Core Viewpoint - The Chinese automotive market is experiencing intensified "involution" competition, characterized by price wars, chaotic advertising, and quality issues, prompting regulatory bodies to implement measures aimed at ensuring product consistency and promoting high-quality development [1][3][9]. Group 1: Price Wars and Profitability - The price war in the Chinese automotive market has escalated, with 227 models involved in price reductions in 2024, significantly higher than 148 in 2023 and 95 in 2022 [3]. - Over 90% of mainstream automotive brands participated in price cuts, with an average reduction of 15%, and some models seeing discounts exceeding 30% off the official price [3]. - The profit margin for the automotive manufacturing industry dropped to 4.3% in 2024 and further declined to 3.9% in Q1 2025, marking a ten-year low and significantly below the manufacturing average of 5.6% [3]. Group 2: Quality Issues and Consumer Complaints - Complaints regarding quality issues in new energy vehicles, such as "battery faults" and "inaccurate range," reached 13,904 from January to May 2025, marking a historical high and an increase of 7.4% from 2024 and 87.9% from 2023 [4]. - The ongoing price war and reckless technological competition are squeezing reasonable profit margins, adversely affecting product and service quality, which is detrimental to both companies and consumers in the long run [4]. Group 3: Regulatory Measures and Industry Response - The Ministry of Industry and Information Technology (MIIT) announced a consistency supervision check for vehicle production, aiming to regulate the automotive industry and curb the "involution" phenomenon [7][8]. - The regulatory framework includes a multi-dimensional governance system, with the MIIT and other departments implementing measures to ensure production consistency and compliance with safety standards [8]. - The automotive industry is showing signs of stabilizing, with a reduction in the number of models experiencing price cuts from 36 in 2024 to 23 in September 2025, and a slight recovery in profit margins [9][10]. Group 4: Future Outlook - The regulatory interventions are expected to reshape the competitive landscape, guiding resources towards technological innovation and quality improvement, ultimately leading to a transition from "scale first" to "quality leading" in the automotive industry [10].