构建核心竞争力，促进汽车业高质量增长

Group 1 - The Chinese automotive market experienced a significant decline in sales, with January sales down 34.2% year-on-year compared to December 2025, and a 66.4% drop compared to the second half of December 2025. The overall retail sales for January are estimated to be around 1.8 million vehicles, reflecting a month-on-month decrease of 20.4% but a slight year-on-year increase of 0.3% [1] - Domestic automakers are setting more realistic sales targets for 2026, moving away from aggressive growth strategies seen in previous years. For instance, Geely aims for a 14% increase to 3.45 million units, while Changan and Chery target growth rates of 13.3% and 14%, respectively [2] - The automotive industry is undergoing a critical transformation, with rapid development in new energy vehicles (NEVs) leading to innovation, structural changes, and intensified competition. This has resulted in a challenging environment where some companies are generating revenue without profit, impacting the profitability of suppliers and dealers [2] Group 2 - Companies should shift their focus from sales volume and scale to sustainable profitability and healthy cash flow. The previous strategy of prioritizing sales as a key performance indicator is becoming unsustainable, especially as the market transitions from high growth [3] - The automotive industry must respect market dynamics, as rapid product iterations can lead to increased costs and shorter product lifecycles. This could result in companies facing high costs and low profits over time, while consumers may become fatigued by frequent updates [3] - In a stabilizing market, companies should avoid relying solely on sales volume and price wars for short-term advantages. Instead, they should focus on maintaining robust cash flow, setting achievable and sustainable sales plans, and optimizing supply chain efficiency and cost management to build long-term competitive advantages [3]