Core Viewpoint - The automotive industry is experiencing an unprecedented price war, with over 200 models expected to see price reductions in 2024, and more than 60 models already reduced in the first four months of 2025. This aggressive price competition has driven profit margins down to a low of 4% [1] Group 1: Industry Challenges - The price war has led to significant price cuts, with some models seeing reductions of up to 50,000 yuan, and even prices dropping to the 30,000 yuan range [1] - The ongoing price competition is squeezing reasonable profit margins, which could negatively impact product and service quality in the long run [1] Group 2: Three Bottom Lines for Industry Stability - The first bottom line emphasizes the importance of maintaining quality and safety standards, adhering to legal regulations, especially in light of recent accidents involving new technologies [2] - The second bottom line focuses on integrity in business practices and maintaining cooperative relationships within the industry, highlighting the need for ethical marketing and adherence to contractual obligations [2] - The third bottom line advocates for a long-term perspective, urging companies to prioritize technological innovation and differentiation over short-term low-price strategies [3] Group 3: Long-term Strategy and Market Impact - Companies should enhance product value through technological innovation rather than relying solely on price advantages to capture market share [4] - Engaging in below-cost sales not only harms individual companies but also disrupts the overall market order, jeopardizing future industry growth [4] - The potential for "internal competition" to escalate into "external competition" in international markets poses risks to the reputation and competitiveness of Chinese automotive brands [4]