Core Viewpoint - The recent price war in the Chinese automotive market, initiated by BYD's promotional activities, reflects significant advancements in the industry and indicates a shift towards a more competitive landscape [3][4][5]. Group 1: Price War Dynamics - BYD launched a "6·18" promotional event with subsidies up to 53,000 yuan, continuing a trend of price reductions over the past three months [1]. - Other automakers like Geely and SAIC have begun to follow suit, indicating a resurgence of price competition in the automotive sector [2][3]. Group 2: Implications of the Price War - The price war signifies the maturity and vibrancy of the Chinese automotive industry, suggesting that it is not merely a sign of "involution" but a necessary phase for enhancing core competitiveness [3][6]. - Historical examples from other industries, such as home appliances, demonstrate that price wars can lead to industry growth and competitiveness rather than decline [3]. Group 3: Policy Considerations - The resurgence of price competition in the new energy vehicle (NEV) sector suggests that government subsidies may no longer be necessary, as the industry has developed sufficient market strength [4][5]. - It is proposed that companies engaging in price wars should not benefit from state subsidies, indicating a potential policy shift regarding support for the NEV sector [4][5]. Group 4: Future of Automotive Consumption - The automotive market is evolving from a simple product sale to a service-oriented model, with vehicles becoming multifunctional and integral to various consumer experiences [5]. - This transformation may lead to new business models, such as purchasing smart driving capabilities or integrated service offerings, changing the landscape of automotive commerce [5][6].