乘联分会·2025-07-15 09:00Core Viewpoint - The article discusses the ongoing "involution" competition in the Chinese automotive industry, highlighting the negative impacts of price wars initiated by companies like BYD, and the government's response to promote healthy industry development [3][10][14]. Group 1: Background and Current Situation - The automotive market has entered a new round of price wars, with BYD launching a promotional campaign that significantly reduced prices across multiple models, prompting other brands to follow suit [5]. - Over a dozen automotive brands have announced price cuts, indicating a widespread trend in the industry [5]. Group 2: Factors Contributing to "Involution" Competition - The decline in manufacturing costs due to supply chain efficiencies and technological advancements has enabled companies to engage in price wars, with BYD sacrificing component profits to maintain sales [7]. - The emergence of "involution" competition is driven by various factors, including policy changes, market dynamics, and ambitious sales targets that lead companies to resort to price reductions to boost sales [8]. Group 3: Impacts of "Involution" Competition - The ongoing price wars are causing profit growth in the automotive industry to decline, leading to increased accounts payable and extended payment cycles for companies [10]. - The pressure on upstream suppliers is resulting in deteriorating product quality, which in turn is causing an increase in consumer complaints [10]. Group 4: Government Response and Future Outlook - Multiple government departments are taking action to address "involution" competition, aiming to shift the focus of competition towards safety and technological innovation [11]. - A coordinated policy approach involving various government bodies is essential to promote healthy development in the automotive industry, with future market dynamics expected to prioritize product quality, technology, and service over price competition [12][14].